The Exim Bank has provided a line of credit of $37.90 million (around Rs 210 crore) to African country Swaziland for financing import of goods and services.
“Export-Import Bank of India (Exim Bank) has concluded an agreement ... with the Government of the Kingdom of Swaziland making available to the latter, a Line of Credit (LOC) of $37.90 million for financing eligible goods, services, including consultancy services from India for the purpose of agriculture development and mechanisation of agriculture in Swaziland,” it said in a statement.
A line of credit is an arrangement between a financial institution and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain.
The goods, services, including consultancy services from India for exports under this agreement are eligible for export under the Foreign Trade Policy of India and the purchase may be agreed to be financed by the Exim Bank, it added.
“...the goods and services including consultancy 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 percent goods and services (other than consultancy services) may be procured by the seller,” it said.