On August 3rd, 2020 Export-Import (EXIM) Bank on behalf of Indian Government, extended a Line of Credit (LoC) of USD 250 million (about Rs. 1,870 Crores) to Mozambique to improve the power supply quality of the country.
The Agreement was signed through exchange between Saroj Khuntia, General Manager of EXIM Bank and Adriano Isaias Ubisse, National Directorate of Treasury, Ministry of Economy and Finance, Mozambique.
LOCs with Mozambique
With the signing of this agreement, India has extended 14 Lines of Credit to Mozambique taking the value to USD 772.44 million.
The Projects covered under Lines of Credit include Supply of Locomotives, Coaches, construction of Borewells and installation of hand pumps, construction of incubator facility, Research and Learning centre, Technology Parks and administrative facility.
LOCs under EXIM
i.At present EXIM Bank has 264 Lines of Credit covering 62 countries across the globe including regions like Africa, Asia & Latin America.
ii.With credit commitments of around USD 25.98 billion available for financing exports from India.
What is LoC?
A line of credit is a flexible loan from a financial institution/Government that consists of a defined amount of money that you can access as needed and repay either immediately or over time.
About EXIM Bank:
Headquarters – Mumbai, Maharashtra
Managing Director (MD) Chief Executive Officer (CEO) – David Rasquinha
The Export-Import Bank of India Act was passed in September 1981 and commenced its operations in March 1982. The Bank’s Mission is to facilitate globalization of Indian Business by providing financial assistance to exporters & importers.
Capital – Maputo
Currency – Mozambican metical
President – Filipe Nyusi
Prime Minister – Carlos Agostinho do Rosário