ANNOUNCEMENT 12 Jan 2018

A Line of Credit has been extended to Zambia with a requirement to procure inputs from India.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

RBI/2018-19/20 A.P. (DIR Series) Circular No. 4 - Reserve Bank of India - 12 July 2018
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=11337&Mode=0

Inception date: 22 Jun 2018 | Removal date: open ended
Still in force

Trade finance

On 12 January 2018, the Government of India agreed to extend a Line of Credit (LoC) of USD 18 million to the Government of the Republic of Zambia for financing machinery, equipment, goods and services to complete the balance of project work of pre-fabricated health posts in Zambia. A LoC of USD 50 million was extended for the same project on 29 March 2012 (see related State Act).

The credit 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.

The credit agreement came into force on 22 June 2018 and the utilisation period allowed is until 60 months from the scheduled date of completion of the project.

AFFECTED SECTORS

 
Inception date: 22 Jun 2018 | Removal date: open ended
Still in force

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.

 
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