On 3rd March 2021, on behalf of the government of India, the Export-Import Bank of India (Exim Bank) signed a soft loan deal of 10.40 million USD (around Rs.75.99 crore) with Eswatini (former Swaziland).
Purpose & Projects:
Exim Bank has extended the Line of Credit(LoC) of 10.40 million USD to the government of Eswatini for the construction of a disaster recovery site.
The loan covers the Eswatini projects in various sectors like information technology, disaster management and agriculture.
With this LoC to Eswatini, Exim bank has extended 3 LoC’s of total value 68.30 million USD to Eswatini.
i.Exim Bank has around 270 LoC’s covering 62 countries in Africa, Asia, Latin America and the Commonwealth of Independent States(CIS) with credit commitments of around 26.75 billion USD, available for financing exports from India.
ii.These LoC’s showcase the expertise and capabilities of project execution in emerging markets of India.
What is a soft loan?
i.A loan with no interest or below market rate of interest is known as a soft loan.
ii.Soft loans have lenient terms like extended grace periods.
iii.They also offer longer amortization schedules than bank loans.
Soft loans are given out by multinational or federal banks to support developing countries or to form political or economic ties with them.
Recent Related News:
On 18th February 2021, the Export-Import (Exim) Bank, government of India, extended a Line of Credit(LOC) of 15 million USD (around Rs. 109.11 crore) to the government of the Republic of Sierra Leone.
About Exim Bank:
MD– David Rasquinha
Headquarter– Mumbai, Maharashtra
Regulated By– Reserve Bank of India
Formerly known as Swaziland
Capitals– Mbabane & Lobamba
Currency– Swazi lilangeni