Exim Bank extends $76.5-million line of credit to Malawi

Export-Import (Exim) Bank of India has extended a $76.50-million line of credit (LOC) to the Government of Malawi at the behest of the Union Government.

The LOC has been extended for development of an irrigation network under the greenbelt initiative, setting up of refined sugar processing equipment and development of fuel storage facilities in Malawi, the bank said in a statement.

This is Exim Bank’s third LOC extended to the Malawi Government, taking the total value of LOCs to $156.50 million.

The LOCs have supported setting up of cotton ginning facilities, supply of equipment for the Green Belt Initiative, a dal processing plant, equipment for the small holders’ irrigation programme and supplies under the one village-one project programme.

Under the LOCs, Exim Bank reimburses 100 per cent of the contract value to the Indian exporter upfront upon the shipment of goods or provision of services.

With the signing of this LOC agreement, Exim Bank has in place 164 lines of credit covering 75 countries with credit commitments of over $8.61 billion available for financing exports from India.

Beena.parmar@thehindu.co.in