The Reserve Bank of India (RBI) will extend a credit line of Rs 15,000 crore to the Export-Import (EXIM) Bank of India.
The announcement is part of the RBI’s latest measures to help businesses and the economy tide over the coronavirus crisis.
The Export-Import Bank of India provides financial assistance to exporters and importers with a view to promoting the country’s international trade.
In view of the COVID-19 pandemic, however, global trade has contracted sharply and global financial markets have turned highly volatile and risk averse, especially to EMEs, RBI Governor Shaktikanta Das said while briefing the media.
Noting that the EXIM Bank is facing challenges to raise funds he said: “It has been decided to extend a line of credit of Rs 15,000 crore to the EXIM Bank for a period of 90 days from the date of availment with rollover up to a maximum period of one year so as to enable it to avail a US dollar swap facility to meet its foreign exchange requirements.”
EXIM Bank predominantly relies on foreign currency resources raised from international financial markets for its operations and it is facing challenges to raise funds in international deb capital markets amid the coronavirus crisis.