Exim Bank To Extend Credit To Romanian Importers

The Export Import Bank of India has decided to extend credit facility of up to $ 10 million to Romanian companies importing goods from India. The duration of this credit facility is one year.

Exim Bank managing director Y B Desai said while commercial banks provide a credit facility up to six months, Exim Bank intends to extend assistance for a longer period.

Exim Bank has received approval from the Reserve Bank of India to extend such a facility. Romania is the first country to receive the RBIs approval, which will also give approvals on a case-by-case basis to other countries.

The decision to provide this facility comes after interacting with customers in these countries, said Desai.

The disbursements and sanctions of Exim Bank grew by 34 per cent and 15 per cent respectively in 1996-97. However, in 1997-98 the growth rates were well below average, Desai said.

The decline in advances can be explained by the fact that there has been a significant drop in exports, said Desai. He added that credit offtake had picked up in the first quarter of 1998.

Exim Bank has extended financing to four minor ports. The bank is expected to announce its annual results in the last week of this month.

Desai said the bank was in the process of setting up a treasury to focus on foreign exchange transactions.Among the services likely to be offered include opening letters of credit for importer financing.

The bank is hoping for a capital infusion from the government during the course of the year. During the current fiscal, the bank plans to increase the number of branches in the country, the first which will be opened in Pune.