Exim Bank's GOI Supported Lines of Credit [LOCs] of USD 2.71 Million and USD 5.05 Million Extended to Banco Exterior De Cuba

Export-Import Bank of India [Exim Bank] has, at the behest of the Government of India, extended two additional Lines of Credit [LOCs] to Banco Exterior De Cuba, Cuba Viz. USD 2.71 Million for financing the setting up of a bulk blending fertilizer plant and USD 5.05 Million for financing the modernization of an injectable products plant. The LOC Agreements to this effect were signed by Mr. Sriram Subramaniam, Deputy General Manager, on behalf of Exim Bank and jointly by Mrs. Elvia Graveran Pacheco, General Business Director and Mr. Yuri Corona Chavez, Commercial Director, on behalf of Banco Exterior De Cuba.

With the signing of the above two LOC Agreements aggregating USD 7.76 million, Exim Bank, till date, has extended three Lines of Credit to Cuba, at the behest of the Government of India, taking the total value of LOCs extended to USD 12.76 million. The first LOC of USD 5 million was extended to the Government of the Republic of Cuba in October 10, 2012 for financing the setting up of a Milk powder processing plant in Camaguey province of Cuba. Cuba is an island nation, located in the northern Caribbean Sea at the confluence of the Gulf of Mexico and the Atlantic Ocean. The United States America lies to the north-west, the Bahamas to the north, Haiti to the east, Jamaica and the Cayman Islands to the south, and Mexico to the west. The main items that India exports to Cuba are pharmaceuticals, fine chemicals, vehicles other than railway or tramway, organic chemicals, rubber manufactured products, and plastic products. The main items that India imports from Cuba are vegetables, fruits, nuts and their preparations, pharmaceutical products, leather, raw hides and skin.

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. With the signing of this LOC Agreements, Exim Bank has now in place 197 Lines of Credit, covering 74 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 10.58 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.