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India,Myanmar : Exim Bank Of India And Myanma Foreign Trade Bank Ink Mou For A Line Of Credit Of Usd 500 Million
Publish Date : 11-Jun-2012
Export-Import Bank of India and Myanma Foreign Trade Bank (MFTB) signed a Memorandum of Understanding (MOU) for extending over a period of time, a Line of Credit (LOC) of USD 500 million for financing specific projects including irrigation projects. The MOU was signed in Nay Pi Taw, on Monday, May 28, 2012, by Mr. T.C.A. Ranganathan, Chairman and Managing Director on behalf of Exim Bank, and Mr. U Nyi Phyu Hla, Managing Director, on behalf of the Myanmar Foreign Trade Bank, in the presence of the Prime Minister of India, H.E. Dr. Manmohan Singh and the President of the Republic of the Union of Myanmar, H.E. Mr. Thein Sein, various Ministers and diplomats of both the countries.
Exim Bank has, at the behest of GOI, extended 7 LOCs of value aggregating USD 247.43 million to the Myanma Foreign Trade Bank. The above LOCs have been / are being used for projects / contracts in areas such as [i] upgradation of the Yangon - Mandalay railway system; [ii] upgradation and maintenance of workshops and railway tracks in Myanmar; [iii] setting up Moreh-Tamu OFC link with Cor-DECT system at Yangon and Mandalay urban centers; [iv] Thanlyin refinery projects; [v] railway projects; [vi] setting up an assembly/manufacturing plant for assembly and manufacturing of Tata vehicles in Myanmar; [vii] setting up of three transmission lines in Myanmar; and [viii] upgradation of Thanbayakan Petrochemical Complex.
As per the terms of the MOU, Exim Bank will make available, to the MFTB, a Line of Credit upto USD 500 million. MFTB and the Exim Bank will sign separate LOC Agreements under this MOU, to finance such projects including irrigation projects as may be mutually agreed by both Governments. The execution of each LOC Agreement covered by this MOU shall be subject to approval by the competent authorities of both Governments.
Trade relations between India and Myanmar have witnessed a robust trend in recent years. India\'s total trade with Myanmar has risen from USD 408 million in 2001 to USD 1.4 billion during 2010-11. During the period 2001-2011, India\'s exports to Myanmar have risen almost 5-fold. India\'s top imports from Myanmar include pulses and wood and articles. India\'s share in Myanmar\'s major imports is still low, which highlights the potential for enhancing these exports to Myanmar. Potential items of export to Myanmar could broadly include machinery & boilers; mineral fuels and oils; vehicles; electrical and electronic equipment; iron and steel; plastics and articles; miscellaneous edible preparations; cotton; rubber and articles; organic chemicals; optical and medical apparatus; and paper and paperboard.
