Export Credit of US $40 mn to Tanzania

[RBI Circular No. 29 dated 28th January 2010]

Sub: Exim Bank's Line of Credit of USD 40 million to the Government of the United Republic of Tanzania.

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated May 28, 2009 with the Government of the United Republic of Tanzania making available to the latter, a Line of Credit (LOC) of USD 40 million (USD forty million only) for financing eligible goods and services including consultancy services from India for the purpose of financing export of tractors, pumps and equipments. The goods and services including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services of the value of at least 85 per cent of the contract price shall be supplied by the seller from India, and the remaining 15 per cent goods and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract from outside India.

2. The Credit Agreement under the LOC is effective from January 11, 2010 and date of execution of Agreement is May 28, 2009. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in case of project exports and 72 months (May 27, 2015) from the execution date of the Credit Agreemen