Exim
Bank extends $ 10-million LoC to Russia's Absolut Bank
Our
Corporate Bureau
28 November 2005
The
Export-Import Bank of India (Exim Bank) has extended
a third line of credit (LoC) to Russia to support India's
exports to Russia. The five-year LoC has been extended
to Absolut Bank for $10 million. The LoC agreement was
signed in Moscow, Russia, on Friday, November 25, 2005,
by Nikolay V Sidorov, chairman of the management board
on behalf of Absolut Bank and. Vinod Goel, deputy GM
on behalf of Exim Bank.
Exim
Bank has earlier extended two LOCs, one for $10 million
to Bank for Foreign Economic Affairs (Vnesheconombank)
and another for $25 million to Bank for Foreign Trade
(Vneshtorgbank) of Russia.
Under the LoC to Absolut Bank, importers based in Russia
will make advance payment of 10 per cent of contract
value and Exim Bank will provide credit for 90 per cent
of contract value to Absolut Bank. Exim Bank will reimburse
Indian exporters upon the shipment of goods and services.
Credit period is up to 5 years.
Absolut
Bank is a mid-sized Russian bank with increasing regional
coverage and a strong market share. International Finance
Corporation has a 7.5-per cent stake in the bank's equity.
The bank's principal business activity is corporate
banking including international trade finance and ECA
backed financing, retail banking, financial markets
and asset management.
Russia
is India's largest trading partner in the Commonwealth
of Independent States (CIS). India's main exports to
Russia are drugs, pharmaceuticals and fine chemicals,
readymade garments of cotton, tea, coffee, non-manufactured
tobacco and processed minerals. Exim Bank's LoC to Absolut
Bank will help strengthen India's trade relations with
Russia, further.
Exim
Bank has a number of Lines of Credit for promoting India's
exports
to countries in Africa, Asia, Latin America and East
Europe. Exim Bank's LOCs afford a risk-free, non-recourse
export financing option to Indian exporters.
