Exim Bank gives $250 mn line of credit to Mozambique
Mumbai: Exim Bank has provided a line of credit (LOC) of USD 250 million to Mozambique and a line of credit of USD 19 million to Guyana, RBI said Thursday.
Exim Bank's LOC of USD 250 million to Mozambique is for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of improving the quality of power supply in Mozambique, RBI said in a notification.
A line of credit is an arrangement between a financial institution and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain.
The LOC to Guyana is for financing eligible goods and services including consultancy services from India for the purpose of setting up of a multi specialty hospital in Guyana, it said.
"Out of the total credit by Exim Bank, the goods and services including consultancy services of the value of at least 75 percent of the contract price shall be supplied by the sellers from India and the remaining 25 percent goods and services (other than consultancy services) may be procured by the sellers for the purpose of Eligible Contract from outside India," it added further.