Export-Import Bank of India (Exim Bank) on 22 Jan 2021 extended a line of credit (LOC) worth USD 50 million to the Republic of Maldives for financing of defence projects. Projects covered under the LOCs extended to Maldives include housing projects, Greater Male' connectivity project, water and sewerage projects, Addu Development Project, international cricket stadium project, defence projects, Gulhifalhu Port Project, Hanimaadhoo airport project and road construction project.
About Line of credit
A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds.
Export-Import Bank of India (EXIM Bank)
Export-Import Bank of India (Exim Bank) was set up in 1982 by an Act of Parliament for the purpose of financing, facilitating and promoting India’s foreign trade. It is the principal financial institution in the country for coordinating the working of institutions engaged in financing exports and imports. The Bank provides financial assistance to export-oriented Indian companies by way of term loans in Indian rupees or foreign currencies for setting up new production facilities, expansion/modernization or upgradation of existing facilities and for acquisition of production equipment or technology. The Bank lays special emphasis on extension of Lines of Credit (LOCs) to overseas entities, national governments, regional financial institutions and commercial banks. The Bank also extends Buyers’ credit and Suppliers’ credit to finance and promote country’s exports.
Exim Bank has now in place 268 LOCs, covering 62 countries in Africa, Asia, Latin America and the Commonwealth of Independent States (CIS), with credit commitments of around USD 26.64 billion, available for financing exports from India.