Exim Bank extends US$ 15 mn Credit Line to Senegal

Export-Import Bank of India (Exim Bank) has extended a line of credit (LOC) of US$ 15 million to government of Senegal for export of goods and services from India for development of rural small and medium enterprises (SMEs) in that country. It will also cover export of agricultural machinery and equipment.

R M V Raman, executive director, Exim Bank and Amadou Bocoum, Senegalese ambassador to India, on behalf of the government of Senegal, signed an agreement to this effect in Mumbai, on December 10, 2004.

This is the second major initiative of Exim Bank for promoting trade between India and theWest African market. Exim Bank has already in place a line of credit of $10 million to the West African Development Bank (BOAD), which can be utilised by the member countries of BOAD, including Senegal. Exim Bank is also one of the non-African shareholders in BOAD.

Under the LOC to Senegal, Exim Bank would reimburse 100 per cent of contract value to the Indian exporters, whose contracts have been approved by both sides upon the shipment of goods.

India's exports to Senegal amounted to $26.69 million during the year 2003-2004. Cotton yarn fabrics madeups, manufactures of metals, plastic and linoleum products, pharmaceuticals and fine chemicals, machinery and instruments and inorganic / organic / agrochemicals were the principal items in India's export basket in the year 2003-04. The just concluded LOC of $15 mn would give a boost to the Indo-Senegal trade, as there is considerable demand in Senegal for Indian equipment and technology.

Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters for which it has a number of LOC for promoting India's exports to countries in Africa, Asia, Latin America, East Europe and Russia.