India’s Exim Bank (Export-Import Bank of India) has provided $500 million (Rs 3561 crore) Line of Credit(LoC) to Bangladesh for defence-related procurement in the neighbouring country. The Exim bank entered into an agreement with Bangladesh’s Armed Forces Division (AFD) in this regard on April 11, 2019. The agreement became effective from November 7, 2019, and the utilisation period of the loan is 10 years from the date of signing the agreement.
Under the loan agreement, financing of export of eligible goods and services from India would be allowed subject to the Foreign Trade Policy(FTP). Out of total credit, 75% of the contract price will be applied by the seller and the remaining 25% will be procured by the seller for the purpose of the eligible contract from outside India, including Bangladesh. The contract price may be reduced from 75% to 65% based on the nature of procurement.
Static/Current Takeaways Important For IBPS SO 2019:
- Exim bank Founded: 1 January 1982.
- Exim bank Headquarters: Mumbai, Maharashtra.
- Exim bank Chief Executive Officer (CEO): David Rasquinha.
Source: The Economic Times