Publish Date : 06-Oct-2012
Export-Import Bank of India (Exim Bank) has, at the behest of the Government of India, extended a Line of Credit (LOC) of USD 178.125 million to the Government of Tanzania, for augmentation of water supply schemes of Dar es Salaam and Chalinzi regions in Tanzania. The LOC Agreement to this effect was signed in Dar es Salaam, Tanzania on Tuesday, October 2, 2012, by Mrs. Geeta Poojary, General Manager on behalf of Exim Bank and H.E. Mr. William A. Mgimwa, Minister of Finance on behalf of the Government of Tanzania in the presence of Mr. Debnath Shaw, High Commissioner of India to Tanzania.
This is the fourth LOC extended by Exim Bank to Tanzania at the behest of the Government of India. The first LOC of USD 40 million was extended, for financing supply of tractors, pumps and equipment to Tanzania. The second LOC of USD 36.56 million was extended, for financing the purchase of 723 vehicles. The third LOC of USD 35 million was offered for bio diesel project. Tanzania is bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The main items that India exports to Tanzania are Petroleum products, pharmaceutical products, transport equipment, machinery & instruments, manmade yarn fabrics madeups, manufactures of metals, primary & semi-finished iron & steel and plastic & linoleum products. The main items that India imports from Tanzania are Cashew nuts followed by pulses, metaliferrous ores & metal scrap, wood & wood products, pearls, precious & semiprecious stones, spices and dyeing, tanning & colouring materials.
Under the LOCs, Exim Bank reimburses 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 159 Lines of Credit, covering 74 countries in Africa, Asia, Latin America, Europe, Oceania and the CIS, with credit commitments of over USD 8.45 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.
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