Exim Bank of India and Government of Zambia have signed an Agreement for a Line of Credit (LOC) of US$ 10 million to finance exports from India to Zambia. The Agreement was recently signed at Lusaka, by Mr. R.M.V.Raman, Executive Director of Exim Bank of India and His Excellency Ngandu P. Magande, Honourable Minister of Finance and National Planning, Government of the Republic of Zambia in the presence of Shri Yogesh Gupta, High Commissioner of India, Zambia. This is the third LOC being extended to Zambia. The first two LOCs of Rs.10 crores and Rs. 5 crores were extended in 1979 and 1982.
Under the LOC of US$ 10 mn, importers are required to make advance payment of 10% of contract value to Indian exporters and the balance 90% of contract value would be reimbursed by Exim Bank to Indian exporters, upfront upon shipment of goods. The LOC can be utilised for export of capital goods, plant and machinery, industrial manufactures, consumer durables and any other items eligible for being exported under the 'Exim Policy' of Government of India.
India's exports to Zambia are in the region of USD 26 million. The main items in India's export basket to Zambia are machinery & instruments, transport equipment, drugs, pharmaceuticals and fine chemicals, cotton yarn fabrics and made-ups.
Exim Bank's LOCs afford risk-free, non-recourse export financing option to Indian exporters. Exim Bank has in place a number of Lines of Credit for promoting India's exports to countries in Africa, Asia, Latin America, East Europe and Russia.
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