The Export-Import Bank of India (Exim Bank India) has concluded an agreement with the government of Angola for a US$10 million line of credit (LoC).

The facility allows for letters of credit (L/Cs) to be opened for the export of Indian agricultural equipment to the west African country.

Tractors and spares

The agreement states that the LoC is available for financing exports of SAME brand tractors manufactured by SAME Deutze-Fahr India Pvt Ltd.

The agreement also allows for the financing of other agricultural implements, spares and services from India, which are eligible for export under India's foreign trade policy.

L/C deadline

The credit agreement is effective from 27 October 2006 while L/Cs must be opened by October 2008 at the very latest. The terminal date for disbursements is 26 April 2009.

The World Bank is currently pressing Angola to make more use of agriculture as a potential source of employment.

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