Exim Bank's USD 42 mn line of credit to Benin for water supply

Exim Bank has provided a Line of Credit of USD 42.61 million to Republic of Benin for financing goods, services, machinery and consultancy services from India for upgradation of water supply schemes.
The proceeds will be used for up gradation of water supply schemes in 69 villages in Benin, RBI said.
"Out of the total credit by Exim Bank under this agreement, the goods and services, including consultancy services of the value of at least 75 per cent of the contract price, shall be supplied by the seller from India and the remaining 25 per cent goods and services may be procured by the seller for the purpose of eligible contract from outside India," it added.

The credit agreement is effective from December 16, 2013 and the date of execution of agreement is September 06, 2013, it said.
A line of credit is a type of loan that doesn't give the borrower a giant injection of funds like an ordinary loan but provides the facility to draw on the credit when required.