Exim Bank extends USD 100 million Line Of Credit to Vietnam

The Export-Import Bank of India (Exim) on Wednesday said it has extended an additional Line of Credit (LOC) of USD 100 million to Vietnam to finance the purchase of equipment and supplies. With the signing of the LOC agreement, Exim Bank has so far extended four LOCs to Vietnam taking the total value to USD 191.50 million, the bank said in a statement.

The LOCs have supported export of items like equipment for hydro power project, cold rolling steel, carding and spinning machines, hydraulic power equipment, tea processing machinery and the Nam Chien hydropower project in Vietnam.

The agreement was signed on September 15 by Exim Bank's General Manager (LOC and trade finance group) Geeta Poojary and Deputy Minister of Vietnamese Ministry of Finance Truong Chi Trung. Under the agreement, Exim Bank will reimburse 100 per cent of contract value to the Indian exporters, upfront upon shipment of goods.

The LOC will be used for sourcing of goods and services from India. Exim Bank has now in place 195 LOCs, covering over 75 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 10.71 billion, available for financing exports from the country.