Home Business Reserve Bank extends Rs 15,000-cr credit line to EXIM Bank

Reserve Bank extends Rs 15,000-cr credit line to EXIM Bank

by the owl speaks

On Friday, the Reserve Bank announced a Rs 15,000-crore credit line to India’s Export-Import Bank to help slacken foreign trade.

The central bank said that the Export-Import Bank of India (EXIM Bank) is dependent on foreign currency borrowing for its operations and is unable to collect the capital as a result of the COVID-19 pandemic.

“It was agreed to extend the Rs 15,000 crore credit line to the EXIM Bank for a period of 90 days from the date of rollover to a maximum term of one year in order to allow it to make use of a US dollar swap facility to meet its foreign exchange requirements,” Reserve Bank of India Governor Shaktikanta Das said.

He said the country’s export-import trade has suffered because of external demand crippling owing to the pandemic and decline in import of essential goods and services.

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