The Export-Import Bank of India (Exim Bank) has entered into an agreement with Tanzania for extending a $36.65 million line of credit to finance exports and consultancy services for projects in the African nation.
The Line of Credit (LoC) is effective from May 20 this year and the date of execution of the agreement is March 28, the Reserve Bank said in a statement.
"Exim Bank has concluded an agreement dated March 28, 2011, with the government of Tanzania, making available to the latter a LoC of $36.56 million for financing eligible goods and services, including consultancy services...," the RBI said.
The agreement mainly involves financing the purchase of 723 vehicles under the India-Africa Fund for Tanzania.
The Indian goods and services that will be exported under this agreement, including consultancy services, will be limited to items eligible for export under the foreign trade policy of the Indian government.
Out of the total credit under this agreement, at least 75% of the goods and services, including consultancy services, have to be sourced from India.