Mumbai, Jun 4 (KNN) Exim Bank has extended USD 46 million line of credit to Mauritius for financing goods machinery, equipment and services including consultancy services from India.

A line of credit is an arrangement between a financial institution, usually a bank, and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain. The borrower can draw down on the line of credit at any time, as long as the maximum balance set in the agreement is not exceeded.

"Exim Bank has entered into an agreement...for a Line of Credit of USD 46 million for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of financing purchase of specialised defence-related equipment and vehicles for the Mauritius Police Force [MPF] in Mauritius," RBI said in a notification. 

Exim Bank and Mauritius had entered into the agreement on February 12, 2014.

Out of the total credit by Exim Bank under the Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent goods and services may be procured by the seller for the purpose of Eligible Contract from outside India.

The credit agreement is effective from May 15, 2014 and the date of execution of agreement is February 12, 2014. (KNN/SD)