Mumbai : Export-Import Bank of India [Exim Bank] has, at the behest of Government of India, extended a Line of Credit [LOC] of USD 10 million to the Government of the Nicaragua, for financing the supply of equipment from India for building two electric sub-stations in Nicaragua. The LOC Agreement to this effect was recently signed by Mr. T.C.A Ranganathan, Chairman and Managing Director, on behalf of Exim Bank and H.E. Mr. Ivan Acosta Montalvan, Minister of Finance and Public Credit, on behalf of the Government of the Nicaragua.

This is the first Line of Credit extended to Nicaragua by EXIM Bank at the behest of the Government of India. Nicaragua is the largest country in the Central America. Nicaragua is bordered by Honduras to the north, Costa Rica to the south, Caribbean Sea to the east and the El Salvador to the west.

Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon shipment of goods. The LOC will be used for sourcing of goods and services from India. Exim Bank has now in place 174 Lines of Credit, covering over 76 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 9.14 billion, 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.

 Source : Sachin Murdeshwar