Exim Bank gives $125 mn credit line to Sudan for sugar project

MUMBAI: The Export-Import Bank of India has provided a $125 million Line of Credit to Sudan for financing a sugar project in that country.

"Export-Import Bank of India has entered into an agreement with the government of the Republic of Sudan, for making available to the latter, a Line of Credit (LOC) of $125 million for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing of Mashkour Sugar Project in Sudan," the Reserve Bank said in a statement.

RBI said that out of the total credit by Exim Bank under this agreement, goods and services - including consultancy services of the value of at least 75 per cent of the contract price - shall be supplied from India. The remaining 25 per cent may be procured from outside India.

The goods, services, machinery and equipment including consultancy services from India for exports under this pact are eligible under the Foreign Trade Policy.

The credit agreement under the LOC is effective from December 20, 2013 and the date of execution of Agreement is July 24, 2013, it said.

The Line of Credit allows borrowers to draw on the credit as and when required.