ANNOUNCEMENT 09 Nov 2010A new trade finance transaction was announced in November 2010.
NUMBER OF INTERVENTIONS
Reserve Bank of India notification
On 9 November 2010, the Government of India agreed to provide a loan of USD 100 million to the ECOWAS Bank for Investment and Development (EBID) for financing machinery, equipment, goods and services including consultancy services to be exported to the 15 member countries of EBID in the West African region namely Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
The credit requires that at least 85% of the contract price for goods and services associated with the project is sourced from India.
On 21 July 2011, the EBID and the Government of India agreed on a new loan of USD 150 million. The terms of the agreement remain similar except the sourcing requirement has been reduced to 75%.
EBID, an international financial institution, was established in 1999 following the transformation of the former Economic Community of Western African States (ECOWAS) Fund established in 1975 by the ECOWAS Treaty signed in this same year. The resources will be utilized to finance projects in the sectors of energy, health, infrastructure and water resources.
The credit is provided by the Export Import Bank of India (EXIM).
The first credit agreement came into force on 21 February 2011 and the second on 12 March 2012.
According to the terms of the agreement, at least 75-85% of the value of the goods and services used for these projects must be sourced from India.