CURRENT AFFAIRS

Detailed explanation-1: -The LoC is for the purpose of financing defence-related procurement in Bangladesh, it said. MUMBAI: India has provided USD 500 million (Rs 3, 561 crore) line of credit to Bangladesh for defence-related procurement in the neighbouring country.

Detailed explanation-2: -Bangladesh and India have signed the first contract under $500 million Line of Credit (LoC) which India finds an important first step in strengthening defence cooperation between the two countries.

Detailed explanation-3: -The Export Import Bank (EXIM) of India and the Government of Sri Lanka on Wednesday signed a $500-million Line of Credit agreement aimed at helping Sri Lanka cope with its current fuel shortages, amid one of the worst economic meltdowns facing the island nation.

Detailed explanation-4: -Exim Bank serves as a growth engine for industries and SMEs through a wide range of products and services. This includes import of technology and export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment.

Detailed explanation-5: -Exim Bank extends the credit directly to overseas buyer of projects from India without recourse to Indian exporters. The borrower should be overseas sovereign governments or a government owned entity. Amount of loan should generally not be more than 85% of the contract value.