India extended 4th LOC of $108.28 mn to Eswatini

On June 15, 2021, the Government of India (GoI) extended its 4th Line of Credit (LOC) worth USD 108.28 million to Eswatini (formerly Swaziland) for construction of their new Parliament building. With this the total value extended to Eswatini as a soft loan has reached USD 176.58 million. These LOCs are being utilized towards the projects of information technology, disaster management, agriculture, and construction.

Signatories:

The agreement for the same was inked by Nirmit Ved, General Manager, Exim Bank, and Neal H Rijkenberg, Finance Minister of Eswatini.

About LoCs of Exim Bank:

It should be noted that with the above LoC, Exim Bank has now placed 272 LOCs, covering 62 countries in Africa, Asia, Latin America, and the Commonwealth of Independent States (CIS), with estimated credit of USD 26.84 billion.

Background:

GoI initiated Indian Development and Economic Assistance Scheme (IDEAS), formerly Indian Development Initiative (IDI), by extending concessional LOCs through Exim Bank in 2003-04. The Development Partnership Administration (DPA) Division set up by the Ministry of External Affairs (MEA) looks after India’s development assistance programs abroad, including LOCs routed through Exim Bank.

Points to be noted:

i.India is also financing a new Parliament in East Africa’s Burundi’s national capital Gitega and 2 Ministerial buildings in Bujumbura, the country’s largest city and main port.

ii.Apart from Exim Bank, India has extended a total of 211 Line of Credits (LoCs) amounting to US $12.85 billion to the African countries in various infrastructure projects.

Recent Related News:

i.FirstRand Bank , the second largest bank in South Africa has decided to withdraw its banking services from India just within a week of Citi banks exit. The Asset value is $118 billion.

About Eswatini:

It is a country in Southern Africa and is Africa’s smallest country.
Capitals– Mbabane, Lobamba
Currency– Swazi lilangeni (SZL)
India High Commissioner to Eswatini– Radha Venkataraman





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