Export-Import Bank of India (Exim Bank India) has made letters of credit (L/Cs) more available for Indian exporters selling to Ghana by extending a new line of credit.

It is worth US$21.72 million, and may be used for financing the export of eligible goods and services, including consultancy services, to Ghana.

Target sectors

The new line of credit has been extended following an agreement made in May this year between the Ghanaian government and Exim Bank India.

Indian exporters are able to use the facility, which became effective on 3 September 2010, for several types of exports

It is anticipated that the scheme will be used in particular to help Indian firms sell into growing Ghanaian sectors including fisheries and waste management.

L/C availability

The last date for opening of L/Cs and disbursement will be 48 months from the scheduled completion date of a contract in the case of project exports

The last date for opening of L/Cs and disbursement will be 72 months from the execution date of the credit agreement in the case of supply contracts.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.