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Trade Promotion Programme - Focus: CIS

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VIII. Exim Bank Initiatives 

Export-Import Bank of India (Exim Bank) operates a comprehensive range of financing, advisory and support programmes to promote and facilitate India's trade and investment with the CIS countries.

Exim Bank extends Lines of Credit (LOCs) to overseas governments, financial institutions, regional banks and other overseas entities, to finance India's exports to those countries. Exim Bank's LOC is a risk-free, non-recourse export financing option available to Indian exporters for promoting their exports. Under this arrangement, overseas importers are required to pay advance payment to Indian exporters, which is usually 10% of the contract value. Exim Bank pays the balance amount, which is normally 90% of the contract value, to Indian exporters through negotiating banks in India, upon shipment of goods. Exim Bank also operates LOCs, announced by the Government of India, to the country's trading partners.

Currently, 4 LOCs of Exim Bank are operative in the CIS region:

1.    LOC of USD 25 mn to Vneshtorgbank, Russia

2.    LOC of USD 10 mn to Vnesheconombank, Russia;

3.    LOC of USD 10 mn to Bank TuranAlem, Kazakhstan, and

4.    LOC of USD 10 mn to Absolut Bank, Russia

Exim Bank is further exploring LOCs to other countries in the CIS region.

Exim Bank provides a range of funded and non-funded facilities, guarantees, information and advisory services to support project exports from India. In the CIS region, Exim Bank has supported a number of Indian project exporters to secure contracts in various sectors including mining, energy, and transportation. Exim Bank also offers a range of information, advisory and support services to Indian companies to effectively participate in projects funded by multilateral funding agencies such as the World Bank, Asian Development Bank, European Bank for Reconstruction and Development (EBRD).

With a view to helping Indian companies in their internationalization efforts, Exim Bank provides term loans both for equity investment in their ventures overseas as well as for lending purposes. In the CIS region, Exim Bank has supported Indian companies to set up joint ventures as for instance in Kazakhstan, Ukraine and Uzbekistan in pharmaceuticals sector.

To create an enabling environment for enhancing two-way flow of trade, investment and technology, Exim Bank has forged alliances/linkages with several institutions in the CIS region, including UZBEKINVEST-National Export-Import Insurance Company, Uzbekistan; Export-Import Bank of the Russian Federation, Russia and Vnesheconombank, Russia, Belvensheconombank, Belarus; and National Bank for Foreign Economic Activity, Uzbekistan.

Exim Bank supports New Media Communication Pvt.Ltd. in bringing out a quarterly, bilingual (English and Russian) publication " Indo-CIS Business", with a view to promoting active exchange of trade and investment related information.

Global Procurement Consultants Ltd. (GPCL), a consultancy company promoted by EXIM Bank for providing procurement related services to multilateral funding agencies, has undertaken a number of projects in the CIS region, including in Armenia, Georgia, Kyrgyzstan and Uzbekistan. Exim Bank's joint venture, Global Trade Finance Limited (GTF) also offers a range of structured foreign trade financing products such as forfeiting and factoring. GTF offers factoring facility to exporters with full credit protection cover in CIS member countries such as Armenia, Azerbaijan, Belarus, Russia, Tajikistan and Ukraine.

Exim Bank also maintains correspondent relations/ arrangements with banks, export credit agencies as also development finance institutions in the CIS region. 

 
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