Exim Bank extends USD 65 mn credit line to Ethiopia

Mumbai, Apr 24 (UNI) Export-Import Bank of India (Exim Bank) has, at the behest of Government of India, extended a Line of Credit (LOC) of USD 65 million to the Government of Ethiopia. The LOC agreement was signed in New Delhi on April 20, 2006.

This is the first ever Line of Credit extended by Exim Bank to the Government of Ethiopia. The LOC is earmarked for financing execution of energy transmission and distribution project in Ethiopia, by an Indian company, said a EXIM Bank release here.

The Indian exporter-company will get 100 per cent reimbursement of CIF(cost including freight) contract value from Exim Bank, upfront upon shipment of equipment and goods and provision of services.

Exim Bank has in place 60 LOCs, covering 78 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments amounting to USD 1.8 billion, available for utilisation for financing exports from India.

These LOCs will finance and catalyze export of power generation plant, power distribution plant, steel billet plant, cement plant, sugar plant, potable water plant, mini hydro plants and items like transport vehicles, electrical equipment for rural electrification, chemicals and pharmaceuticals, railway coaches and locomotives and agricultural equipment besides construction of a cricket stadium in Georgetown, Guyana.

Exim Banks LOCs afford a risk-free, non-recourse export financing option to Indian exporters.

UNI SN PP SKB1902