Exim Bank to provide $22.5 million line of credit to Gambia

MUMBAI: Exim Bank will provide a line of credit of USD 22.5 million to Gambia for financing electrification project in the African nation.

Export-Import Bank of India (Exim Bank) has entered into an agreement with the government of the Republic of Gambia for...USD 22.50 million for financing eligible goods, machinery, equipment and services including consultancy services from India," the Reserve Bank said in a release.

The line of credit (LoC) is for financing electrification expansion project for the greater Banjul area in Gambia.

Of the total credit, goods and services, including consultancy of at least 75 per cent of the contract value is to be supplied by sellers from India, as per the agreement.

However, the remaining 25 per cent goods and services may be procured from outside India.

In a line of credit loan, interest is not usually charged on the credit that is unused. Also, the borrower can draw on the line of credit at any time.