Export-Import Bank of India (India Exim) has extended a US$100mn line of credit to the government of Nepal to finance various road projects, rural electrification projects, power transmission and hydropower projects. It is India Exim’s first line of credit granted to Nepal.
India is a vital market for Nepal’s economy, with 67% of the country’s exports going to India, and 59% of its imports flowing in from its neighbour. Under the terms of the line of credit, India Exim will reimburse 100% of the contract value to the Indian exporters, upfront upon the shipment of goods or the provision of services.
On the same day in Accra in Ghana, another line of credit was signed between India Exim and the Nigerian Export-Import Bank (Neximbank) for US$5mn. The agreement was signed to coincide with the 2007 annual general meeting of the African Export-Import Bank being held in the Ghanaian capital last week.
Under the terms of the credit line, Nigerian importers will be able to make advance payment of 10% of contract value, and Exim Bank will provide credit for 90% of the contract value to Neximbank. Credit period can go up to five years.
Main exports from India to Nigeria are non-basmati rice, metals, machinery and instruments, drugs and pharmaceuticals, paper and wood products and petroleum products.