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.
Trade
