ANNOUNCEMENT 21 Oct 2011In October 2011, the government of India announced a change in its trade finance instruments.
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On 21 October 2011, the Government of India agreed to provide a loan of USD 250 million to the Government of Nepal for financing machinery, equipment, goods and services to finance infrastructure projects such as highways, airports, bridges, irrigation, roads, railways and hydropower projects.
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 29 June 2012.