Exim Bank extends $7.76 mn line of credit to Cuban Bank

Export-Import Bank of India has, at the behest of the Government of India, extended two additional Lines of Credit [LOCs] to Banco Exterior De Cuba, Cuba aggregating $7.76 million.

While one LOC (for $2.71 million) is for financing the setting up of a bulk blending fertilizer plant, the other (for $5.05 million) is for financing the modernisation of an injectable products plant.

With the signing of the above two LOC Agreements, Exim Bank, till date, has extended three Lines of Credit to Cuba, at the behest of the Government of India, taking the total value of LOCs extended to $12.76 million.

Under the LOC, Exim Bank will reimburse 100 per cent of contract value to the Indian exporters, upfront upon shipment of goods. The LOC will be used for sourcing of goods and services from India.

The main items that India exports to Cuba are pharmaceuticals, fine chemicals, vehicles other than railway or tramway, organic chemicals, rubber manufactured products, and plastic products. The main items that India imports from Cuba are vegetables, fruits, nuts and their preparations, pharmaceutical products, leather, raw hides and skin. 

Source : The Hindu