The Export-Import Bank of India (Exim Bank India) has extended two credit lines to Indian businesses looking to do most types of business with Brazil and to enterprises providing equipment to major railway projects in Myanmar.

Indian exporters tapping these credit lines with letters of credit (L/Cs) may also obtain comprehensive insurance against L/C errors from the government's official export credit insurer.

Brazil

The first Exim Bank India credit line is for US$10 million to Unibanco-Uniao De Bancos Brasileiros. Loans are available for financing exports of any equipment, machinery, goods and services from India to buyers in Brazil.

The last dates for opening L/Cs and disbursements of credit are 13 October 2006 and 13 April 2007 respectively.

Myanmar

The second Exim Bank India credit line is for US$56.358 million to the Myanmar Foreign Trade Bank. Loans will be available for goods and contracts for upgrading the Yangon-Mandalay Railway System and the upgrading of workshops and railway tracks in Myanmar.

The last dates for opening L/Cs and disbursements of credit are 28 September 2006 and 28 March 2007 respectively.

L/C cover

The Export Credit Guarantee Corporation of India (ECGC) meanwhile says that it is able to provide exporters doing L/C business with a comprehensive insurance package.

According to ECGC, it is the only Indian organisation that provides insurance for losses arising out of non-payment in an export transaction under L/Cs by the buyers citing minor discrepancies. ECGC provides this cover under its standard policies subject to certain conditions.

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