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Exim Bank gives $30 million line of credit to Ghana.


Date: 08-11-2019
Subject: Exim Bank gives $30 million line of credit to Ghana
The Export-Import (Exim) Bank has provided a $30 million line of credit to Ghana for potable water project in the country. Exim Bank has entered into an agreement with Ghana for a line of credit (LoC) of $30 million (about Rs 210 crore) for financing rehabilitation and up-gradation of potable water system in Yendi, Ghana, the Reserve Bank of India (RBI) said in a release on November 7.

Under the arrangement, financing of export of eligible goods, works and services from India would be allowed subject to their being eligible for export under the Foreign Trade Policy of India and whose purchase may be agreed to be financed by the Exim Bank.

Out of the total credit by Exim Bank under the agreement, goods, works and services of the value of at least 75 percent of the contract price shall be supplied by the seller from India and the remaining 25 percent of goods and services may be procured by the seller for the purpose of eligible contract from outside India, RBI said.

The agreement under the LoC (soft loan or loan with low interest rate) is effective from October 11, 2019.

Under the LoC, the terminal utilisation period is 60 months after the scheduled completion date of the project.

Source: moneycontrol.com

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