EXIM Bank of India provides credits to 94 countries across the world

The New Nation (Dhaka, India) August 14, 2010 Dhaka, Aug. 14 — The Indian government since 1988, has extended 143 lines of credit, covering over 94 countries through the Export-Import Bank of India (EXIM India) that is totally owned by the state, sources said.

Under such initiatives India made credit commitments of over US$ 4.71 billion to 94 countries covering in Africa, Asia, Latin America and Europe. While the Reserve Bank of India, which is India’s central bank does not do any long term lending as the act of Parliament which set it up does not allow it to do so. However, the acts of Parliament which set up the Exim Bank and State Bank of India allow them to be vehicles of Government of India lines of credit. go to web site bank of india

Exim Bank was set up by the Export-Import Bank of India Act, 1981, the sources said. The Government of India usually prefers to use the Exim Bank in most bilateral aid cases. The latest are those of loans to Tanzania ($ 40 million), Bangladesh ($ 1 billion) and Congo ($ 58.5 million). this web site bank of india

Usually loans are given at Libor + 0.5 %. Libor rate has over the last two years fluctuated from 1.25 % to 4.5 %. India, tries to extend loans to friendly countries at a fixed rate of 1.75 %. In all such lines of credit, the government of India subsidies Exim Bank to the tune of 2.5 % for interest forgone. In comparison ADB lends at rates which work out to be in excess of 3 % to most of the less developed countries to which India gives such assistance, sources said.

Besides, Bangladesh, India Government-Exim Bank has lent at 1.75 % rate of interest with 20 year payback terms to the countries: Mozambique, Senegal, Angola, Myanmar, Guyana, Ghana, Tanzania and Congo. It has lent at the tougher Libor + 0.5 % rate with varying payback time, ranging from 5 years to 15 years to Zambia, Ghana, Myanmar, Sudan, Lesotho, Tajikistan, Syria, Mongolia, Suriname, Azerbaijan and Sri Lanka. Unlike ADB, World Bank, UK and USA, India does not insist on any policy changes in return for loan packages. In the past these international banks and Western donor nations have insisted on several ‘structural adjustment policies’ in return for loans: Across the- board privatization of public utilities and publicly owned industries; slashing of government budgets, leading to cutbacks in spending on health care and education; focusing resources on growing export crops for industrial countries rather than supporting family farms and growing food for local communities; downsizing government and public sector by adopting hire and fire policies, it said.

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