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Cabinet approves signing of EXIM Bank pacts under BRICS ICM
September 28 , 2017
2426 days
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- The Union Cabinet chaired by the Prime Minister has given its approval to the signing of the
- Interbank Local Currency Credit Line Agreement
- Cooperation Memorandum Relating to Credit Ratings
- These EXIM Bank Agreements are done with participating member banks under BRICS Interbank Cooperation Mechanism.
- Both the Agreement and the MoU are umbrella pacts, and are non-binding in nature.
- EXIM Bank finances, facilitates and promotes India's international trade.It provides competitive finance at various stages of the business cycle covering
- Import of technology,
- Export product development,
- Export production
- Export credit at pre-shipment and post-shipment stages.
- Investments overseas.
- The initial Master Agreement on Extending Credit Facility in Local Currency under the BRICS Interbank Cooperation Mechanism had a validity of five years
- EXIM Bank raises resources in the off-shore market in diverse currencies and swaps to mitigate the risk.
- It would enable sharing of credit ratings amongst the BRICS member banks, based on the request received from another bank.
- This would be an ideal mechanism to mitigate the credit risks associated with cross-border financing.
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