ANNOUNCEMENT 14 Dec 2012A new trade finance transaction was announced in December 2012.
NUMBER OF INTERVENTIONS
On 14 December 2012, the Government of India entered into an agreement to provide a loan of USD 35 million to the Government of the Republic of Ghana to finance the purchase of Indian goods and services for the purpose of constructing a sugar plant.
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 plant is sourced from India. The remaining 25% may be sourced from elsewhere. This measure disadvantages other sellers of the same products to Ghana.
The credit agreement is effective from 27 June 2013. The Circular "A.P. (DIR Series) Circular No.13" was published for the same by the Reserve Bank of India on 17 July 2013.