EXIM Bank provides the government of the Togolese Republic with a $ 40 million line of credit supported by the Indian government
The Reserve Bank of India (RBI) announced that the Export and Import Bank of India (Exim Bank) has entered into an agreement with the Government of the Togolese Republic, to provide the line of Credit (LoC) supported by the Government of India of USD 40 million to the latter in order to finance the electrification project of 350 villages by Photovoltaic Solar Systems in the Togolese Republic.
Under the agreement, financing for the export of eligible goods and services from India, as defined in the agreement, would be permitted provided that they are eligible for export under the foreign trade policy of the Government of India and the purchase of which may be agreed to be financed by Exim Bank under this agreement.
Of the total credit extended by Exim Bank under the agreement, goods, works and services valued at at least 75% of the contract price will be supplied by the seller from India, and the 25 Remaining% of goods and services may be purchased by the seller for the purposes of the qualifying contract from outside India.
The LoC agreement comes into effect on December 7, 2021. Under the LoC, the period of use of the terminal is 60 months after the planned completion date of the project.
LoC shipments must be reported on the export declaration form in accordance with instructions issued by the Reserve Bank from time to time.
No agency commission is payable for export under the LoC above. However, if necessary, the exporter can use his own resources or use the balances of his account in foreign currencies for the payment of a commission in free foreign currencies. Category I Authorized Reseller (AD) banks may authorize such a payment after realization of the full eligible value of the export, subject to compliance with existing instructions for payment of the agency commission.