Exim Bank extends $30-million LoC to Burkina Faso
15 Oct 2005
Export-Import
Bank of India (Exim Bank) has, at the behest of Government
of India, extended a Line of Credit (LOC) of USD 30.97
million to the Government of Burkina Faso, under the
"Team-9 Initiative". The LOC has been earmarked
for financing India''s exports to Burkina Faso for execution
of various agricultural projects and construction of
National Post Office. The LOC Agreement to this effect
has been signed in New Delhi, on Tuesday, October 11,
2005, by Mr. P. R. Dalal, General Manager, on behalf
of Exim Bank and Mr. Alexis K. Yanogo, Director of Bilateral
Cooperation, on behalf of the Government of Burkina
Faso. A 7-member delegation representing various ministries
of Government of Burkina Faso, was present at the signing
ceremony.
Team-9 envisages a special cooperation model between India and 8 countries of West Africa, viz. Burkina Faso, Chad, Cote d''Ivoire, Equatorial Guinea, Ghana, Guinea Bissau, Mali and Senegal. Under the Team-9 initiative, GOI provides LOCs through Exim Bank to Team-9 countries to finance setting up of various projects by Indian companies in those countries. As part of this initiative, Government of India has asked Exim Bank to extend the above-mentioned LOC to Government of Burkina Faso. Under the LOC to Burkina Faso, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of goods.
Burkina Faso is a Francophone country located in West Africa. Agriculture provides livelihood to nearly 84% of the population and hence its development is crucial for the economy. The industry sector, which contributes 21% of the GDP, comprises mainly of mining and manufacturing activities. Continued donor support and sound macroeconomic management have helped to achieve sustained economic growth with real GDP growth averaging 4.7% in 1999-2003.
India''s main exports to Burkina Faso during 2004-05 were transport equipment, drugs & pharmaceuticals, manufactures of metals, inorganic-organic/fine chemicals, rubber-manufactured products and machinery and instruments. The above LOC will help enhance Indian presence in the West African region and pave the way for boosting India''s trade with Burkina Faso, substantially.
Exim Bank has in place a number of Lines of Credit for promoting India''s exports to countries in Africa, Asia, Latin America, East Europe and Russia. Exim Bank''s LOCs afford a risk-free, non-recourse export financing option to Indian exporters.
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