Exim Bank
- November 27, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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.