Exim banks of India, Malaysia ink financial cooperation pact

Export Import (Exim) Bank today said it has inked an agreement with its counterpart in Malaysia to strengthen financial cooperation.

The memorandum of understanding (MoU) will also help guaranteeing and other financial mechanism to support projects of interest to both the banks, Exim Bank said in a statement.

"While both these institutions are cooperating with each other under the umbrella of Asian Exim Banks Forum, through this MoU, both these institutions intend to identify areas of cooperation...

"... In providing funding support for Indian companies setting up operations in Malaysia, and Malaysian companies setting up operations in India," the statement said.

The pact was signed by Yaduvendra Mathur, Chairman and Managing Director, Export-Import Bank of India, and Norzilah Mohammed, Acting Chief Executive Officer, Export-Import Bank of Malaysia Berhad, in Tokyo on the sidelines of the Annual Meeting of the Asian Exim Banks Forum (AEBF).

Under the MoU, both banks shall also endeavour to finance infrastructure and other projects in third countries where Malaysian and Indian enterprises are involved.

It will also help promote economic cooperation and industrial development as per their respective mandates.

Also, possibilities of financing in local currencies of eligible projects, including project finance, equipment financing, export and import financing, overseas investment financing, will also be explored.

"The MoU further enhances the scope of information and knowledge sharing between the two banks," the statement added.