ANNOUNCEMENT 03 May 2016

A new trade finance transaction was announced in May 2016.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



EXIM Bank Press release
http://www.eximbankindia.in/node/1578


RBI/2017-18/77 A.P. (DIR Series) Circular No. 09 - 12 October 2017
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11145&Mode=0

Inception date: 22 Aug 2017 | Removal date: open ended

Local sourcing

The credit for this transaction is provided by the Export Import Bank of India (EXIM) and requires that at least 75% of the contract price for goods and services associated with the project is sourced from India.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 22 Aug 2017 | Removal date: open ended

Trade finance

On 3 May 2016, the Export Import Bank of India, on behalf of the Government of India, extended a Line of Credit of USD 1 billion to the Government of Mongolia for financing the development of "railways and related infrastructure projects".

As is seen from Letters of Credit extended by the EXIM bank in the past, the agreement will require that the recipient country source at least 75% of the contract price for goods and services associated with the project from India.

As per the Reserve Bank of India's Circular RBI/2017-18/77 A.P. (DIR Series) Circular No. 09, the credit agreement is effective from 22 August 2017.