“Exim Bank has extended a buyer’s credit (BC) under National Export Insurance Account (NEIA) of USD 398.33 mn to the Government of Ghana,”Exim Bank said in a statement today.
The loan will be used for the design and construction of the 84-km railway line and railheads between Tema and Akosombo in Ghana.
The agreement to this effect was signed in Accra, Ghana, on November 22, 2016, by Seth E Terkper, Minister of Finance and Economic Planning, Ghana, and Pushpesh Tyagi, Resident Representative in Cote d’ Ivoire, on behalf of Exim Bank.
BC-NEIA is a unique financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters and serves as an effective market entry tool to traditional as well as new markets in developing countries, which need deferred credit on a medium- or long-term basis.
Till date, Exim Bank has sanctioned USD 2.84 billion for 22 projects valued USD 3.07 billion under the programme.
Exim Bank said it has also given in-principle commitments to supporting several projects at the behest of leading Indian project exporters to enable these Indian companies to submit bids or negotiate contracts with overseas project authorities.
Besides promoting India’s exports, Exim Bank’s BC-NEIA programme showcases Indian expertise and project execution capabilities in emerging markets. It has also extended seven India-supported lines of credit (LOCs) to Ghana aggregating USD 208.26 million for export of railway corridors and agro processing plant. These funds were also utilised towards equipment and services for rural electrification, construction of presidential office, fish processing and sugar plant.