Exim Bank gives $ 10 million line of credit to Seychelles

MUMBAI: Exim Bank has provided a line of credit (LOC) of $ 10 million to Seychelles, RBI said today.

The LOC for Seychelles is for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of import of goods and services for specific projects funded by Development Bank of Seychelles in Seychelles, RBI said in a notification.

A line of credit is an arrangement between a financial institution and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain.

"The goods, services, machinery and equipment including consultancy services from India for exports under this agreement are those which are eligible for export under the Foreign Trade Policy of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement," RBI said.

The credit agreement under the LOC is effective from June 10, 2013 and the date of execution of agreement is December 18, 2012, it added.