Export-Import Bank of India (Exim Bank) has entered into an agreement with the Democratic Republic of Congo (DRC) to provide a US$34.5 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 project.

Conditions

The funds are set aside to finance a power distribution project in the DRC's Bandundu Province.

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 a 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 agreement is effective immediately, with the last date for opening of L/Cs 48 months from the scheduled completion date of contract in the case of project exports and 72 months from the execution date of the credit agreement in the case of 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); Djibouti (DC World News, 13 July 2015); Chad (DC World News, 26 August 2015) as well as Cuba and Myanmar (DC World News, 1 April 2015).

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