| Date: |
15-05-2015 |
| Subject: |
Exim Bank provides $1 bn Line of Credit to Nepal |
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Mumbai, May 14 : Export Import (Exim) Bank has provided a Line of Credit (LOC) of USD 1 billion to finance hydro-power, irrigation and infrastructure projects in Nepal.
"Export-Import Bank of India (Exim Bank) has entered into an agreement... with the Government of Nepal, for making available to the latter, a Line of Credit of USD 1 billion for financing of hydropower, irrigation and infrastructure development projects in Nepal," RBI said in a notification.
The central bank said that the goods, machinery, equipment and services, including consultancy services from India for exports under the agreement as eligible for export under the Foreign Trade Policy of India.
Out of the total credit by Exim Bank, goods and services including consultancy services of value of at least 75 per cent of contract price will be supplied by seller from India.
However, it will exclude civil works for which 50 per cent of the contract price shall be supplied by the seller from India, it added.
RBI said the credit agreement is effective from March 27, 2015.
A LOC is a kind of loan that is not very large but gives the borrower the freedom to draw the loan amount at a later stage of time.
Source : ptinews.com
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