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08/06/2017 09:21am

Export Credit MoU between India and Korea gets cabinet nod

image Export Credit MoU between India and Korea gets cabinet nod

New Delhi, June 8 (KNN) The Union Cabinet under the chairmanship of Prime Minister Narendra Modi recently gave the approval to the proposed MoU between India and Korea. The MoU Is proposed for extending export credit worth 9 billion dollars.

From the Indian side the Export-Import Bank of India (EXIM Bank) and from the Korean side the Export-Import Bank of Korea (KEXIM) will be collaborating for credit of 9 billion dollars focusing on infrastructural development in India. Also the MoU will enable better cooperation for the flow of goods and services as a part of the projects of the third world countries.

The Cabinet nod comes just ahead of the expected signing of the MoU that is scheduled for the upcoming visit of the Finance Minister Arun Jaitley to Seoul, Korea during the 14-15 June for the Annual Financial Bilateral Trade Dialogue.

The agreement is being seen as an instrumental step towards the promotion of the exports between both the countries.

The export credit will be facilitated via EXIM bank for promoting projects including the smart cities, railways, power generation and transmission.

Earlier in 2015 the Prime Minister visited Korea following which Korean Government expressed its intension to offer 10 billion dollars for infrastructural development in India.

The package was subsequently prepared to comprise of 1 billion dollars 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. (With PIB Inputs) (KNN/ DA)


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