Exim Bank to provide line of credit to Malawi

Mumbai: The Export-Import Bank of India (Exim Bank) has entered into an agreement with Malawi for providing a USD 50 million line of credit for financing exports and consultancy services for projects in the African nation.

The credit agreement under the line of credit (LoC) is effective from February 23 this year and the date of execution of the agreement is February 1.

"Exim Bank has concluded an agreement dated February 1, 2011 with the government of Malawi, making available to the latter a LoC of USD 50 million for financing eligible goods and services, machinery and equipment including consultancy services...," the Reserve Bank said in a statement.

The agreement mainly involves financing of projects in the agriculture sector in Malawi, including cotton processing facilities .

The goods and services, including consultancy services from India for exports under this agreement are those which are eligible for export under the foreign trade policy of the Indian government.

Out of the total credit under this agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India.

Source: Financial Express