Export-Import Bank of India (Exim Bank) has entered into an agreement with the government of the Republic of Nicaragua to support Line of Credit (LoC) of $7.35 million to the government.
EXIM on behalf of the Indian government is providing with this credit for the purpose of replacement and equipment of the high technology centre of Hospital Antonio Lenin Fonseca at Managua in the Republic of Nicaragua.
Under the arrangement, financing of export of eligible goods and services from India, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement.
Out of the total credit by Exim Bank under the agreement, goods, works and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India, and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.
The Agreement under the LoC is effective from April 16, 2021. Under the LoC, the terminal utilisation period is 60 months after the scheduled completion date of the project.
In 2020, Exim Bank agreed to provide LoC of USD 20.10 million for reconstruction of Aldo Chavarria Hospital to the Nicaragua government.