The Export-Import Bank of India has extended a $100-million Line of Credit to Vneshecomobank, the Russian State-owned Bank for Development and Foreign Economic Affairs. The agreement was signed by Chairperson and Managing Director, Exim Bank of India, Ms. Ravneet Kaur and the Chairman of Vnesheconombank, Mr Vladimir Dmitriev.
The funds extended will be utilised for financing India’s export of capital goods, equipment and other such services to Russia. According to the agreement between the two banks, Exim Bank will reimburse 90 per cent of the contract value upfront upon the shipment of goods and rendering of services. This is the second time that the Indian bank has extended a line of credit to the Russian bank.
The Export Import bank’s LoCs offer a risk-free, non-recourse export financing option to Indian exporters.
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