Exim Bank of India extends $30-mn LoC to Mozambique

Export-Import Bank of India (Exim Bank) today said it has extended a $30-million line of credit (LOC) to Mozambique to finance rural electrification projects in that country.     

The projects are in the provinces of Gaza, Zambezia and Nampula, Exim Bank said in a statement. This is the fifth LoC extended by Exim Bank to Mozambique at the behest of the Government of India, taking the total to $115 million, the statement said.     

The first LoC of $20 million was extended to Mozambique in September 2004, the second of $20 million in August 2006, the third of $20 million in August 2008 and the fourth of $25 million in December 2008.     

Under the LoCs, Exim Bank will reimburse 100 per cent of contract value to the Indian exporter upfront upon the shipment of goods.     

In 2007-08, India's exports to Mozambique stood at $446 million, consisting primarily of petroleum products, primary and semi-finished iron and steel, non-basmati rice, pharmaceuticals, transport equipment, machinery and instruments, manufactures of metals, cotton yarn fabrics made-ups, plastic, and man-made yarn fabrics made-ups, the statement said.