New Delhi: In a bid to promote project exports, Export-Import Bank of India (Exim Bank) has lowered its credit cost by 0.25 percent.
The interest rate structure for Buyer's Credit under Government of India National Export Insurance Account (BC-NEIA) payable by eligible Borrower has been revised downwards by 25 bps across tenors.
The lowering of rate will help promote project exports, EXIM Bank executive director Debasish Mallick told PTI.
The revised interest rate is effective from October 1.
Exim Bank in conjunction with ECGC operates BC-NEIA under which the bank finances and facilitates project exports from India, he said.
Besides promoting India's exports, BC-NEIA programme enables demonstration of Indian expertise and project execution capabilities in emerging markets, he said.
Further, he said, charges and fees, including a suitable interest differential as may be determined by Exim Bank is payable by the Indian company.
Exim Bank has till date sanctioned USD 2.84 billion for 22 projects valued USD 3.06 billion under the programme for executing projects in countries, including Cameroon, Ethiopia, Ghana, Iran, Maldives, Mozambique, Senegal, Sri Lanka, Tanzania, Zambia and Zimbabwe.
Further, the bank has also given in-principle commitments for supporting several projects, at the behest of leading Indian project exporters, in order to enable these Indian companies to submit bids or negotiate contracts with overseas project authorities.