Union Cabinet approves MoU between India and Korea for export credit of USD 9 billion
The export credit will be utilized through lending by EXIM Bank for promoting projects for priority sectors.
The Union Cabinet, chaired by the Prime Minister Narendra Modi, on 7 June 2017 approved the Memorandum of Understanding (MoU) between Export-Import Bank of India (EXIM Bank) and Export-Import Bank of Korea (KEXIM) for export credit of USD 9 billion.
The MoU is aimed towards the infrastructural development in India and for the supply of goods and services as part of projects in third countries. Moreover, it is expected to promote India's international exports and will deepen political and financial ties between India and Korea.
The export credit will be utilized through lending by EXIM Bank for promoting projects for priority sectors such as smart cities, railways, power generation and transmission in India and for the supply of goods and services from India and Korea as part of projects in third countries.
Highlights of the MoU
• Both the countries will hold mutual consultations to structure the financial assistance, review the existing arrangements and related procedures.
• EXIM Bank will identify viable projects in India and for the projects in third countries, both the sides will jointly identify viable projects.
• The export credit of USD 9 billion will be extended by KEXIM by way of Investment Credit. This amount will also be utilized by KEXIM as the financier without the participation of EXIM Bank.
• It will also help in exchanging mutual experience, sharing information on financing export and import operations, project assessment and knowledge generated in respective fields of activities.