Exim Bank's Government of India supported Line of Credit of USD 800 million to the Government of the Republic of Maldives- (Reserve Bank of India) (05 Sep 2019)

MANU/APDR/0030/2019

Banking

Export-Import Bank of India (Exim Bank) has entered into an agreement dated March 18, 2019 with the Government of the Republic of Maldives for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 800 million (USD Eight Hundred million only) for the purpose of financing development projects in the Republic of Maldives. Under the arrangement, financing of export of eligible goods, works and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under the agreement, goods, works and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.

The Agreement under the LoC is effective from August 20, 2019. Under the LOC, the terminal utilization period is 60 months after the scheduled completion date of the project. Shipments under the LoC shall be declared in Export Declaration Form as per instructions issued by the Reserve Bank from time to time. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners' Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category-I (AD Category-I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission.

Tags : CREDIT REPUBLIC MALDIVES SUPPORT