The LOC Agreement to this effect was signed in New Delhi by Mr. Yaduvendra Mathur, Chairman & Managing Director, on behalf of Exim Bank and H.E Mr. François BALUMUENE NKUNA, Ambassador of the Democratic Republic of Congo in India, on behalf of the Government of Democratic Republic of Congo, in the presence of officials of Embassy of Democratic Republic of Congo in India and Exim Bank.
With the signing of the above LOC Agreement for USD 82 million, Exim Bank, till date, has extended five Lines of Credit to Democratic Republic of Congo, at the behest of the Government of India, taking the total value of LOCs extended to USD 350.50 million. The first LOC of USD 33.50 million was extended to the Government of the Democratic Republic of Congo in August 2005 for financing supply of buses, spare parts, cement project, hydraulic excavators in Democratic Republic of Congo. The second LOC of USD 25 million was extended to the Government of Democratic Republic of Congo in August 2009 for financing supply of hand pumps, drilling rigs, submersible pumps, DG sets and spare parts and equipment for workshops for execution of rural water supply project. The third LOC of USD 42 million was extended to the Government of Democratic Republic of Congo in August 2010 for financing Kakobola hydroelectric power project. The fourth LOC of USD 168 million was extended to the Government of the Democratic Republic of Congo in July 2011 for financing Katende hydroelectric power project. Democratic Republic of Congo is a West African country bordered by South Central Africa with a narrow strip of land on the northern bank of the Zaire River and is surrounded by the Republic of Congo and the Atlantic Ocean to the west, Angola and Zambia to the southeast, Tanzania, Burundi, Rwanda and Uganda to the east, South Sudan to the northeast and the Central African Republic to the north and northeast. The major items in India’s export basket to Democratic Republic of Congo are pharmaceuticals & fine chemicals, transport equipment, machinery and instruments, manufactures of metals, meat and preparations, primary and semi-finished iron and steel.
Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporter, upfront upon the shipment of goods/ provision of services. With the signing of this LOC Agreement, Exim Bank has now in place 194 Lines of Credit, covering 75 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 10.61 billion, available for financing exports from India. 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.
