ANNOUNCEMENT 24 Aug 2009A new trade finance transaction was announced in August 2009.
NUMBER OF INTERVENTIONS
Reserve Bank of India notification
On 24 August 2009, the Government of India agreed to provide a loan of USD 20 million to the Government of Eritrea for financing machinery, equipment, goods and services for agriculture and education projects. In particular, the following projects were supported:
- Multipurpose agriculture projects not exceeding USD 10 million (including the Artificial Insemination Development Project, Poultry Waterer and Feeder, Establishment of Milk Collection Centers, Pressurized Irrigation System, Solar Pumps Project and Soil Survey and Land Evaluation Equipment)
- Multipurpose education projects not exceeding USD 10 million. Support was provided for the purchase of teaching materials including books, laboratory/educational equipment, chemicals and computers for seven Eritrean Institutions of Higher Education established in 2003-04.
The credit is provided by the Export Import Bank of India (EXIM) and requires that at least 85% of the contract price for goods and services associated with the project shall be sourced from India.
The credit agreement came into force on 1 October 2009.