$500 million credit line extended by EXIM Bank to Sri Lanka // Some Information about Exim Bank and Credit line // 2022 Current Affairs //

$500 million credit line extended by EXIM Bank to Sri Lanka:

Export and Import Bank of India(EXIM Bank) as a representative of Govt. of India, extended a line of credit of $500 million to the government of Sri Lanka for financing the purchase of petroleum products and other infrastructure projects. The island country recently faced a severe foreign exchange crisis, as a result, it has to cut heavily on petroleum product imports led to a possible energy crisis. During this challenging time, India extended its helping hand to this island country with various monetary aid and monetary line of credit. 

With this Line of Credit(LOC), the total LOC extended to Sri Lanka by India is now stand at USD 2.18 billion. Exim Bank now stands with 276 Line of Credit, Covering countries all over the world, mainly developing countries. These LOCs place India into a strong position of diplomacy and provide the world with a message about India's expertise to project execution in emerging economies.

What is a Line of Credit?

It's a financial agreement between two entities, especially financial institutions. Under LOC a credit line is extended which the client or receiver entity can access at any time as long as they do not exceed the max limit.

SPECIAL NOTES FOR ASPIRANTS:

• Exim Bank HQ- Mumbai

• Exim Bank Est. in 1982.

• Exim Bank Managing Director- Harsha Bangari

• Sri Lanka PM: Gotabaya Rajapaksha

• Sri Lanka President: Mahinda Rajapaksha