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Exim
Bank's LOCs to
Africa
Add Up to $3.68
bn
Line of Credit
(LOC) is a special
financing mechanism
through which
Export-Import
Bank of India
(Exim Bank) extends
finance to support
export of projects,
goods and services
from India on
deferred payment
terms. Exim Bank
extends Lines
of Credit to overseas
financial institutions,
regional development
banks, sovereign
governments and
other entities
overseas. The
Indian exporters
can obtain payment
for eligible value
from Exim Bank,
without recourse
to them, against
negotiation of
shipping documents.
Exim Bank also
extends LOCs at
the behest of
Government of
India.
To enhance bilateral
trade and investment
relations, Exim
Bank of India
has in place several
Lines of Credit
(LOCs) extended
to a number of
institutions/agencies
in Africa. These
LOCs supplement
the “Focus
Africa”
programme of the
Government of
India. Currently,
66 LOCs are in
operation amounting
to US$ 2.25 bn
covering 47 countries
in the African
region. These
LOCs facilitate
import of project-related
equipments and
services from
India on deferred
credit terms.
At the same time,
many of these
LOCs are earmarked
for infrastructure
and related projects.
In January 2009,
Exim Bank has
extended the following
LOCs to the African
region:
• LOC of
US$ 25 mn to Government
of Sudan;
• LOC of
US$ 166.23 mn
to Government
of Ethiopia.
The Line of Credit
(LOC) of US$ 25
million to the
Government of
Sudan is the first
tranche of the
total credit commitment
of US$ 150 million
for financing
the Elduem Sugar
Project in White
Nile State in
Sudan. The LOC
Agreement to this
effect was signed
in Khartoum, Sudan
on January 26,
2009, by S. R.
Rao, Executive
Director, on behalf
of Exim Bank and
Mohamed Abdelatti
Abdella EI Maki,
Project Manager,
Mashkour Sugar
Project, Sudan,
in the presence
of Ambassador
of India to Sudan
Deepak Vohra,
Sam Pitroda, Chairman,
National Knowledge
Commission, and
Awad Ahmed EI
Jazz, Minister
of Finance and
National Economy,
Government of
Sudan.
The LOC of US$
166.23 mn to the
Government of
Ethiopia is the
second tranche
of the total credit
commitment of
US$ 640 mn for
financing sugar
industry rehabilitation
in Ethiopia. The
LOC agreement
to this effect
was signed in
Addis Ababa, Ethiopia,
on Tuesday January
27, 2009, by S.R.
Rao, Executive
Director on behalf
of Exim Bank and
Sufian Ahmed,
Minister of Finance
and Economic Development,
on behalf of Government
of Ethiopia, in
the presence of
Gurjit Singh,
India's Ambassador
to Ethiopia. Exim
Bank has earlier
extended an LOC
of US$ 122 mn
as first tranche
to finance sugar
industry rehabilitation
in Ethiopia.
Exim Bank has
now in place 110
Lines of Credit,
covering over
94 countries in
Africa, Asia,
Latin America,
Europe and the
CIS, with credit
commitments of
over US$ 3.68
bn, available
for financing
exports from India.
Exim Bank's LOCs
afford a risk-free,
non-recourse export
financing option
to Indian exporters.
Besides promoting
India's exports,
Exim Bank's LOCs
enable demonstration
of Indian expertise
and project execution
capabilities in
emerging markets.
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