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Exim Bank faces default from 4 countries

The Exim Bank is facing serious loan defaults from Syria, Sudan, Djibouti and Bissau. The bad loan crisis from Syria and Sudan is caused due to the current political issues in these countries. The exposure of Exim Bank to these countries is mostly in the form of lines of credit, which enable buyers in these countries to import developmental and infrastructure projects, equipment, goods and services from India on deferred credit terms. The operative lines of credits to these four countries are around $890 million. The bank is in discussion with the ministry of external affairs to resolve the issue. The bank’s nonperforming assets at the end of March 2015 were 2.4% of its loans on a gross basis and 0.6% on a net basis. In FY2013-14, the bank had extended two dozen LOCs amounting to $1.77 billion to 18 countries.

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