The LOC Agreement to this effect was signed in New Delhi on Tuesday, October 27, 2015, by H.E. Mr. Patrick Anthony Chinamasa [M.P.], Minister of Finance and Economic Development, on behalf of the Government of Republic of Zimbabwe and Mr. Yaduvendra Mathur, IAS, Chairman & Managing Director, on behalf of Export-Import Bank of India.
With the signing of the above LOC Agreement for USD 87 million, EXIM Bank, till date, has extended two LOCs to the Republic of Zimbabwe, at the behest of the Government of India, taking the total value of LOCs to USD 115.60 million. The first LOC of USD 28.60 million was extended in June 2013 for up-gradation of Deka Pumping Station and River Water Intake System in Zimbabwe.
With the signing of this LOC Agreement, EXIM Bank has now in place 201 Lines of Credit, covering 63 countries in Africa, Asia, Latin America, Oceania and the CIS, with credit commitments of over USD 12.28 billion, available for financing exports from India. Under the LOCs, EXIM Bank will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of equipment and goods/ provision of services. EXIM Bank’s LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India’s exports, EXIM Bank’s LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.
