Export-Import Bank of India (EximBank India) has agreed with the government of Zimbabwe a US$87 million credit line to help develop the African country's power sector.

Zimbabwean importers will be able to tap the credit line by opening letters of credit (L/Cs) to purchase Indian goods and services eligible for export under India's foreign trade policy.

Criteria

Eligible goods and services include consultancy services for financing the renovation and upgrading of Zimbabwe's Bulawayo Thermal Power Plant.

Indian sellers must supply at least 75 per cent of the value of goods and services bought using the facility while the remaining 25 per cent may be procured from outside India.

L/C timings

The credit line is effective from 19 August 2016 according to the Reserve Bank of India.

The latest date for opening of L/Cs under the facility will be 60 months after the scheduled completion date of the project.

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