Export-Import Bank of India (Exim Bank) has entered into an agreement with the government of Niger to provide a US$25 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 to provide potable water for semi urban and rural communities in Niger.

Goods and services

Eligible goods include machinery, equipment and services including consultancy services from India for specified works in Niger.

Finance is available for the provision of goods and services with a minimum of 75 per cent Indian content.

The bank entered into a similar agreement with Togo to make L/Cs available for Indian firms undertaking work in power projects there (DC World News, 5 November 2014).

L/C arrangements

Exim Bank had previously extended four lines of credit for Niger over the last ten years. One of US$17 million was for the procurement of buses, trucks, tractors, flour mills and motor pumps while another US$20 million facility targeted the power sector.

Two more lines of credit worth US$34.54 million have been extended for the electrification of 30 villages using a solar photovoltaic system and for the construction of a 5MW solar plant.

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