The Export-Import Bank of India (Exim Bank) has extended a US$5 million line of credit to Lesotho under which letters of credit (L/C) can be opened for two years.

The arrangement made between Exim Bank and the government of Lesotho aims to make it easier for India's exporters to sell to buyers in the tiny southern African country.

Eligible goods

The credit is available for financing exports from India of capital goods, plant and machinery, industrial manufactures, consumer durables and certain other items.

The full list of eligible items is catalogued in India's Foreign Trade Policy of the Government of India for goods exported to buyers in Lesotho.

Time limits

The credit agreement became effective on 1 February 2005.

The last dates for opening L/Cs and credit disbursements are 31 January 2007 and 31 July 2007 respectively according to an Exim Bank statement.

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