Question: What is the export credit limit under the proposed MoU to be signed between Export-Import Bank of India and Export-Import Bank of Korea?
(a) $ 9 Billion
(b) $ 20 Billion
(c) $ 25 Billion
(d) $ 30 Billion
Ans: (a)
- On June 7, 2017, the Union Cabinet chaired by the Prime Minister Narendra Modi approved the proposed 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 export credit will be utilized through lending by EXIM Bank for promoting projects for priority sectors, including smart cities, railways, power generation and transmission etc., in India and for the supply of goods and services from India and Korea as part of projects in third countries.
- The MoU is proposed to be signed between the two banks during the forthcoming visit of the Finance Minister Arun Jaitley, to Seoul, South Korea during 14-15 June 2017 for the Annual Financial Bilateral Dialogue.
- The parties to the MoU will hold mutual consultations to structure the financial assistance, review the existing arrangements and related procedures. EXIM Bank will identify viable projects in India. For projects in third countries, both parties will jointly identify viable projects.
- Notably, the intent of this MoU was visible in the joint declaration issued at the time of visit of Prime Minister Modi to the Republic of Korea.
- The joint declaration stated that Korea intends to offer USD 10 billion of infrastructural development in India. The package was subsequently prepared to comprise of USD 1 billion from the South Korean Economic Development Cooperation Fund (EDCF) as government to government funding and USD 9 billion as export credit from KEXIM. The credit of USD 9 billion from KEDIM is to be through a formal MoU to be signed between KEXIM and EXIM Bank.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=164476