Export-Import Bank of India has extended a line of credit of US$56mn, at the behest of the government of India, to state-owned Myanmar Foreign Trade Bank (MFTB), for financing railway projects in Myanmar.
The credit line will be used partly for financing supply of locomotives and coaches from India for the development of Yangon-Mandalay Railway Track Line in Myanmar and the balance, for supply of equipment and machine tools from India, for workshops and upgrade of railway facilities in Myanmar.
Under the credit to Myanmar, India Exim will reimburse Indian exporters 100% of contract value, upon shipment of equipment and goods and provision of services by exporters. The credit period available is up to 10 years.
Myanmar, which is a member of BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, Thailand-Economic Co-operation) Group, presents tremendous opportunities to India for project and product exports. India’s exports to Myanmar in 2002-03, amounted to US$75.2mn. Main exports to Myanmar during the year were primary and semi-finished iron & steel, drugs, pharmaceuticals and fine chemicals, machinery and instruments, plastic and linoleum products and manufactures of metals.