Exim, European Bank In Credit Pact

Exim Bank has tied up with European Bank for Reconstruction and Development for extending lines of credit to 26 European countries. "The move is aimed at regaining India's hold on European markets, mainly the CIS countries," explained Export Import Bank of India Bank managing director T C Venkat Subramanian. The bank was trying to find markets in African countries, except those that were highly indebted ones. The bank was in the process of negotiating with South Africa as well.

In the meanwhile, the proposal to divest government's stake in Exim Bank to a level below 40 per cent was still being considered. However, Subramanian declined to comment on the issue. Talking about performance of the bank, Subramanian said it expected to report a Rs 2,500 crore disbursement figure in 2001-02, marking 15 per cent growth.

 

The thrust this fiscal was on Latin American countries where the bank expected to disburse $100 million. Exim bank has already disbursed $20 million and another $20 million was on the cards. The bank expected the bulk of business to emerge from Brazil, Mexico and Central America.

Meanwhile, the bank along with Westdeutsche Landesbank Girozentrale (West LB), Germany's fourth largest banking group, and International Finance Corporation (IFC), have joined hands to form Global Trade Finance Private Ltd to offer factoring and forfaiting to Indian exporters.

WestLB has taken up 40 per cent in the company, while Exim Bank and IFCI holds 35 per cent and 25 per cent in the $10 million equity base of the company. The company will provide lines of credit at competitive pricing. Global Trade Finance has also tied up with Factors Chain International of Amsterdam, that offer a network of some 144 factoring companies from 49 countries.

Nevertheless, Subramanian said that the country will achieve a nine per cent export growth this year and the pharmaceutical, agrochemical and engineering sector is expected to fuel the growth.