Mrs. Geeta Poojary, General Manager of Export-Import Bank of India exchanging a Line of Credit [LOC] Agreement for USD 47 million with H.E. Ms. Gennet Zewide, Ambassador Extraordinary and Plenipotentiary of the Federal Democratic Republic of Ethiopia to India.
Export-Import Bank of India [Exim Bank] has, at the behest of the Government of India, extended a Line of Credit [LOC] of USD 47 million to the Government of Ethiopia, which is the fifth tranche of the total credit commitment of USD 640 million for financing sugar industry rehabilitation in Ethiopia. The LOC Agreement to this effect was signed in New Delhi, on Thursday April 12, 2012, by Mrs. Geeta Poojary, General Manager, on behalf of Exim Bank and H.E. Ms. Gennet Zewide, Ambassador Extraordinary and Plenipotentiary of the Federal Democratic Republic of Ethiopia to India, on behalf of Government of Ethiopia. Exim Bank has earlier extended four LOCs of USD 122 million as first tranche, USD 166.23 million as second tranche, USD 213.31 million as third tranche and USD 91 million as fourth tranche to finance sugar industry rehabilitation in Ethiopia.
Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of goods. The LOC will be used for financing at least 75% of total contract value through sourcing of goods and services from India. Ethiopia, located in Eastern Africa, has also been the recipient of an earlier Line of Credit of USD 65 million extended for setting up an Electricity Transmission and Distribution Project in Ethiopia.
The Ethiopia covers a land area of about 1,221,900 square kms, and has an estimated population of 76.2 million in 2011, with GDP at an estimated USD 29.5 billion in 2011 and per capita GDP of USD 387.1. India's trade with Ethiopia stood at USD 309 million in 2010-11. India's exports to Ethiopia amounted to USD 275.9 million in 2010-11 and India's imports from Ethiopia stood at 33.2 million in 2010-11. Major export items from India to Ethiopia are pharmaceuticals & fine chemicals, machinery & instruments, primary & semi-finished iron & steel, manufactures of metals, transport equipment, plastic & linoleum products, and paper/wood products. India's important import items from Ethiopia include leather, pulses, non-ferrous metals, spices and metaliferrous ores & metal scrap.
Exim Bank has now in place 158 Lines of Credit, covering over 75 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 8.21 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.
For further information, please contact
Ms. Geeta Poojary,
Export-Import Bank of India,
Centre One Building, Floor 21,
World Trade Centre Complex, Cuffe Parade,
Mumbai 400 005.