On June 19, 2020 Export-Import(EXIM) Bank on behalf of the Indian Government, extended a Line of Credit(LOC) of USD 20.10 million to the Government of the Republic of Nicaragua for the reconstruction of Aldo Chavarria Hospital.
Agreement
The agreement was signed by Tarun Sharma, General Manager, EXIM bank & José Adrián Chavarria, General Vice minister, Ministry of Finance and Public Credit, Government of Nicaragua.
Key Points
Total LOC extended to Nicaragua– Till now, with this agreement EXIM bank has extended 4 LOCs to Nicaragua, on behalf of Indian Government, with a total value of USD 87.63 million.
Projects covered under the LOCs– The projects under the LOCs include the following; The supply of equipment for the construction of two sub-stations, construction of transmission lines, building new substation, expanding the existing substations and reconstructing a hospital.
Key Info of LOC
i.After signing this LOC agreement the bank now holds 261 LOCs which cover 62 countries in Africa, Asia, Latin America & Commonwealth of Independent States(CIS), with approximately USD 25.70 billion of credit commitments available to finance exports from India.
ii.In addition to promoting India’s exports, EXIM bank’s LOC helps India demonstrate expertise and project execution capabilities in emerging markets.
What is LOC?
It is a credit facility extended by a bank or other financial institution to a government, business or individual customer. The borrower can take the money as needed until the reached limit & as the money is repaid, it can be again borrowed if it is an open LOC
About EXIM Bank:
Headquarters– Mumbai, Maharashtra
Managing Director(MD) and Chief Executive Officer(CEO)– David Rasquinha
About Nicaragua:
Capital – Managua
Currency – Nicaraguan córdoba
