New Delhi, July 4 (KNN) Government has approved the recapitalization of the Export-Import Bank of India (Exim Bank) and will issue recapitalization bonds to the tune of Rs. 6,000 crore for capital infusion in the Bank, said the Minister of Commerce and Industry, Piyush Goyal in a written reply in the Lok Sabha

He said that the government has approved a capital infusion of Rs. 2,000 crore to Export Credit Guarantee Corporation of India (ECGC) over a period of three years from FY 2017-18 to FY 2019-20 to support more exports to emerging and challenging markets like Africa, CIS, Latin America and Asian countries and to bring down the leverage ratio to 20 times.

Government has made a provision of Rs. 4,500 crore in its revised budget estimate for 2018-19, for capital infusion in Exim Bank through recapitalization bonds. This is in addition to the capital infusion of Rs. 500 crore in the Bank during 2018-19, he added.

He asserted that the interim budget has further made a provision of Rs. 1,500 crore towards capital infusion in the Bank during 2019-20, of which Rs. 550 crore is proposed through recapitalization bonds and the remaining by way of subscription of share capital of the Bank.

Also, so far Rs. 50 crore, Rs. 500 crore and Rs. 389.17 crore have been invested in the FY 2017-18, FY 2018-19 and FY 2019-20 respectively. The balance amount of Rs. 1,060.83 crore is proposed to be sanctioned during FY 2019-20 subject to availability of budget provisions, he said. (KNN/Cheshta)