Exim Bank extends LOC to Seychelles of Rs 55 crore

Export-Import Bank of India (Exim Bank) has, extended a Line of Credit (LOC) of $10 million (Rs 55 crore)to the Government of Seychelles for financing import of goods and services from India for specific projects funded by Development Bank of Seychelles. The LOC agreement to this effect was recently signed in New Delhi by TCA Ranganathan, Chairman and Managing Director of Exim Bank and Pierre Laporte, Minister of Finance, Government of  Seychelles.

This is the third LOC extended by Exim Bank to Seychelles. The first LOC for $5 million (Rs 27.50 crore) was extended to Seychelles Marketing Board (SMB) on commercial terms. And the second LOC of $8 million (Rs 44 crore) was extended, taking the total value of LOCs extended to $23 million (Rs 126.50 crore). The LOCs have supported supply of vehicles, medicines, food items and so on.

 

Under the LOCs, Exim Bank reimburses 100 per cent of contract value to the Indian exporter, upfront upon the shipment of goods / provision of services. With the signing of this LOC agreement, Exim Bank has now in place 166 LOCs, covering 74 countries in Africa, Asia, Latin America, Europe, Oceania and the CIS, with credit commitments of over $8.65 billion (Rs 47.56 crore), available for financing exports from India.

Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India's exports, its LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.