The RBI announced on Thursday that the Export-Import Bank of India (Exim Bank) has extended a line of credit of $50 million to the Republic of Maldives for defence projects.
Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, will be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under the agreement, goods, works, and services of the value of at least 75% of the contract price shall be supplied by the seller from India, and the remaining 25% of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.
Under the LoC, the terminal utilization period is 60 months from the scheduled completion date of the project.
AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain complete details of the LoC from the website www.eximbankindia.in, the RBI stated in a release.
