IBEF: February 25, 2021
On Wednesday, Exim Bank said it had granted a US$ 100 million loan to Mauritius for defence-related procurement on behalf of India.
Exim Bank stated that on behalf of the Government of India, the Export-Import Bank of India (Exim Bank) has issued a credit line (LOC) of US$ 100 million to the Government of the Republic of Mauritius for the purpose of financing the procurement of defence products from India.
On February 19, 2021, through an exchange between Renganaden Padayachy, Minister of Finance, Economic Planning and Development of Mauritius, and Gaurav Singh Bhandari, Chief General Manager of Exim Bank, the LOC contract was signed.
With the signing of this loan agreement, Exim Bank, on behalf of India, issued six LOCs to Mauritius to date, bringing total value of the LOCs to US$ 764.80 million.
Mauritius' soft loans cover projects in sectors such as defence, connectivity and infrastructure sectors, including Metro Express Limited, Social Housing and others.
In addition, with this loan agreement, Exim Bank now has 269 LOCs in operation, covering 62 countries in Africa, Asia, Latin America and the Commonwealth of Independent States (CIS), with loan commitments of approximately US$ 26.64 billion, for exports financing from India.
In addition to boosting India's exports, Exim Bank's LOCs enable Indian expertise and project execution capabilities to be demonstrated in emerging markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.