Exim Bank extends USD 750 million loan to Nepal

MUMBAI: The Export Import Bank of India ( Exim Bank) has approved USD 750 million loan to Nepal to finance its post-earthquake reconstruction projects.

A separate USD 92.18 million line of credit (LOC) has been given to Tanzania to finance rehabilitation and water supply improvement in Zanzibar.

The line of credit (LOC) to Nepal is effective from February 24, 2017, the Reserve Bank of India said in a statement.

For Tanzania, it is from February 20, 2017, RBI said in a separate notification.

Under an LOC contract, the terminal utilisation period of the loan amount is 60 months after the scheduled completion date of the project.

A line of credit is a soft loan with conditions that at least 75 per cent of goods and services, including consultancy services of of the contract price, would be supplied by seller from India.

Remaining 25 per cent goods and services may be procured by from outside India, RBI said in a notification.