Exim Bank to provide $ 28 mn loan to Senegal for exports

Mumbai: The Export-Import Bank of India (Exim Bank) has entered into an agreement with Senegal for extending a USD 27.5 million soft loan to finance exports and consultancy services for a rural electrification project in the African nation. The Line of Credit (LoC) is effective from 24 August this year and the date of execution of the agreement is 21 April, the Reserve Bank said in a statement. “Exim Bank has concluded an agreement dated 21 April,2011, with the government of Senegal, making available to the latter a LoC of USD 27.50 million for financing eligible goods, services, machinery and equipment, including consultancy services from India, for the purpose of financing a rural electrification project in Senegal,” it said. [caption id=“attachment_109689” align=“alignleft” width=“380” caption=“During 2010-11, 22 LoCs worth a combined USD 2.38 billion were extended by the Exim Bank. Reuters”]  [/caption] Out of the total credit provided under this agreement, at least 75 per cent of the goods and services, including consultancy services, have to be sourced from India. With an aim to monitor the end-use of soft loan assistance by the Exim Bank to other countries, the Finance Ministry had last week said that all such projects will be monitored twice a year by a special committee. The bank provides a LoC under the Indian Development and Economic Assistance Scheme to poor, low and medium income countries. During 2010-11, 22 LoCs worth a combined USD 2.38 billion were extended by the Exim Bank to support the export of projects, goods and services from India. As of March, 2011, the Bank has in place 138 LoCs covering 72 countries in Africa, Asia, the CIS, Europe and Latin America, with credit commitments aggregating to USD 6.66 billion. PTI