Exim
Bank extends $15 million 'line of credit' to Equatorial
Guinea
Our
Corporate Bureau
9 September 2005
Export-Import
Bank of India (Exim Bank) has, at the behest of government
of India, extended a 'line of credit' (LOC) of $15 million
to the government of Equatorial Guinea under the Team-9
initiative. The LOC has been earmarked for financing
exports from India for a potable drinking water plant
project to Equatorial Guinea. The LOC agreement was
recently signed by R M V Raman, executive director,
Exim Bank and Jose Esono Micha, vice minister for foreign
affairs, government of Equatorial Guinea.
Team-9
is aimed at developing a special co-operation model
between India and eight countries of West Africa (Burkina
Faso, Chad, Cote d'Ivoire, Equatorial Guinea, Ghana,
Guinea Bissau, Mali and Senegal). Under the Team-9 initiative,
the Indian government provides LOCs through Exim Bank
to the member countries to finance setting up of various
projects by Indian companies in those countries. Exim
Bank will reimburse 100 per cent of contract value to
the Indian exporters, upfront upon the shipment of goods.
Equatorial
Guinea's economy is dominated by the secondary sector,
with the oil industry being the most significant. The
contribution of the oil sector to the GDP was as high
as 68.5 per cent in 2004. The discovery of large deposits
of oil and gas in the 1990s has transformed Equatorial
Guinea into Africa's fastest-growing economy, with a
GDP growth of 33 per cent in 2004-05, and one of the
main destinations of US investment in the continent.
The boom in the oil industry has also provided a boost
to the services sector. Massive foreign investment in
the oil and gas sector, a sharp rise in oil exports
and favourable terms of trade have contributed to its
growth in GDP since 1996.
India's
trade with Equatorial Guinea is currently low and India's
main exports to the country during 2004-05 were primary
and semi-finished iron and steel, meat products, drugs
and pharmaceuticals
and plastic and linoleum products. The LOC will pave
the way for boosting India's trade with Equatorial Guinea,
substantially.
Exim
bank's net profit for the previous financial year was
slotted at Rs258 crore.
List
of reports on Exim Bank
List
of general reports on economy
List
of reports on Trade