Exim Bank Extends USD 100 Million LOC to Vietnam for Financing Purchase of Equipment/Supplies in Vietnam

Export-Import Bank of India [Exim Bank] has, at the behest of Government of India, extended an additional Line of Credit [LOC] of USD 100 million to the Government of the Socialist Republic of Vietnam, for financing the purchase of equipment / supplies in Vietnam. The LOC Agreement to this effect was signed on Monday September 15, 2014, by Mrs. Geeta Poojary, General Manager, Lines of Credit and Trade Finance Group on behalf of Exim Bank and Mr. Truong Chi Trung, Vice Minister, Ministry of Finance on behalf of the Government of the Socialist Republic of Vietnam. The LOC Agreement was signed in the presence of the President of India H.E. Mr. Pranab Mukherjee, the President of Vietnam H.E. Mr. Trương Tấn Sang and diplomats from the Government of India and the Government of Vietnam.

With the signing of the above LOC Agreement, Exim Bank, till date has extended four Lines of Credit to Vietnam, at the behest of the Government of India, taking the total value of LOCs extended to Vietnam to USD 191.50 million. The LOCs have supported export of items like equipments 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.

Under the LOC, Exim Bank will reimburse 100% 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. Vietnam is the eastern most country on the Indo-China Peninsula in Southeast Asia. Exim Bank has now in place 195 Lines of Credit, 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 India. Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India’s exports, Exim Bank's LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.