Exim Bank

Exim Bank

Context: The Export-Import Bank of India (Exim Bank) will be disbursing $100 million by way of project finance to COVID-19 vaccine makers in the country this fiscal

Concept:

India Exim Bank has offered $150 million to the African Exim Bank and $100 million to Africa Finance Corporation. They can use it for any imports from India. It is a project for financing and promoting vaccine import from India.

Export-Import Bank of India

• Export-Import Bank of India is a wholly owned Govt. of India entity which was established in 1982.
• HQ : New Delhi

Aim: financing, facilitating and promoting foreign trade of India.

• The EXIM bank extends Line of Credit (loC) to overseas financial institutions, regional development banks, sovereign governments and other entities abroad.
• Thus the EXIM Banks enables buyers in those countries to import developmental and infrastructure, equipment’s, goods and services from India on deferred credit terms.
• The bank also facilitates investment by Indian companies abroad for setting up joint ventures, subsidiaries or overseas acquisitions.

Functions of the EXIM Bank

• It finances the import and export of goods and services from India and countries other than India.
• Provides refinancing services to banks and other financial institutes for their financing of foreign trade
• The bank also provides technical and other assistance to importers and exporters. Depending on the country of origin there are a lot of processes and procedures involved in the import-export of goods. The EXIM bank will provide guidance and assistance in administrative matters as well.
• Will also underwrite shares/debentures/stocks/bonds of companies engaged in foreign trade.
• Will offer short-term loans or lines of credit to foreign banks and governments.
• EXIM bank can also provide business advisory services and expert knowledge to Indian exporters in respect of multi-funded projects in foreign countries.

EXIM initiatives

• GRID Initiative (Grass Roots Initiative and Development),It is the Financial support to support grassroots initiatives / technologies , particularly those with export potential, and to assist artisans / producer groups / clusters / small businesses / NGOs in achieving a remunerative return on their goods and promoting exports from these units.
• Exim Bank currently has 233 credit lines (LOCs) in place, covering 62 countries in Africa,Asia, Latin America and the CIS, with approximately $22.86 billion in credit commitments available to fund exports from India.
• The Government of India provides interest subsidies to SAARC countries for project exports through EXIM Bank of India.
• The EXIM Bank Project Development Fund to catalyse the Indian economic presence in Cambodia, Laos, Myanmar and Vietnam.
• Cooperation with the BRICS Bank, Exim Bank of India entered into an MoU on general cooperation with the New Development Bank (NDB) to create a mechanism for cooperation in accordance with national laws and regulations, in addition to the transfer of skills and the sharing of information among the signatories.
• Exim Bank of India, under the BRICS Interbank Cooperation Framework, is the nominated member development bank.