Export-Import Bank of India (Exim Bank) has entered into an agreement with Djibouti to provide a US$15.13 million credit line for exports of Indian goods and services.

Under the agreement, letters of credit (L/Cs) can be opened and disbursements made for Indian firms undertaking work in the Ali Sabieh Cement Project.

Conditions

Of the total Exim Bank credit, goods and services including consultancy services of the value of at least 75 per cent of the contract price must be supplied by the seller from India.

The remaining 25 per cent of goods and services, except for consultancy services, may be procured by the seller for the purpose of an eligible contract from outside India.

L/C timings

The credit line is effective from 5 June 2015 and the last date for opening of L/Cs is 48 months from the scheduled completion date of contract in the case of project exports and 8 March 2021 for other supply contracts.

Exim Bank has entered into similar agreements with Nepal (DC World News, 22 May 2015), Rwanda (DC World News, 2 January 2014; Togo (DC World News, 5 November 2014); Niger (DC World News, 8 December 2014) as well as Cuba and Myanmar (DC World News, 1 April 2015).

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