Mumbai: Export-Import Bank of India [Exim Bank] has, at the behest of Government of India, extended two additional Lines of Credit [LOCs] to the Government of Burundi viz. USD 4.22 million for Farm Mechanization in Burundi and USD 0.17 million for preparation of Detailed Project Report [DPR] for an Integrated Food Processing Complex in Burundi. The LOC Agreements to this effect were signed in New Delhi by Mrs. Geeta Poojary, General Manager, on behalf of Exim Bank and H.E. Mr. Tabu Abdallah Manirakiza, Minister of Finance and Economic Development Planning, Government of Burundi.

With the signing of the above two LOC Agreements aggregating USD 4.39 million, Exim Bank, till date, has extended three Lines of Credit to Burundi, at the behest of the Government of India, taking the total value of LOCs extended to USD 84.39 million. The first LOC of USD 80 million was extended to the Government of Burundi in May 2011 for financing the Kabu Hydro Electric Project in Burundi. Burundi is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Although the country is landlocked, much of the southwestern border is adjacent to Lake Tanganyika. Burundi is a member of East African Community (EAC), African Union (AU), Multilateral Investment Guarantee Agency (MIGA), and African Trade Insurance Agency (ATI). The major items that India export from Burundi are pharmaceuticals and fine chemicals, machinery and instruments, transport equipment, manmade yarn fabrics made-ups and paper/wood products. Some of the major items of import from Burundi are leather, oilseeds, organic chemicals and non-electrical machinery.

Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporter, upfront upon the shipment of goods/ provision of services. With the signing of this LOC Agreement, Exim Bank has now in place 186 Lines of Credit, covering 75 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 10.20 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