Announcement of IFC Approves US 25 Million Dollars Credit Line to Exim Bank in India to Finance Small and Medium Enterprises on February 13, 1995

IFC APPROVES US$25 MILLION CREDIT LINE TO EXIM BANK IN INDIA TO FINANCE SMALL AND MEDIUM ENTERPRISES WASHINGTON, D.C., Feb. 13 -- The International Finance Corporation (IFC) has approved a US$25 million loan to the Export-Import Bank of India to assist in the development of small and medium-sized enterprises (SMEs) in the export sector. The loan agreement was signed today in Washington, D.C., by Mr. Jannik Lindbaek, Executive Vice President of IFC and Ms. Tarjani M. Vakil, Chairperson and Managing Director of the Exim Bank. The Exim Bank, India's official export credit agency with a strong private sector orientation, has already provided trade and project financing to over 1,000 SMEs through its export credit programs. SMEs account for 40 percent of Indian exports. This is IFC's second credit line to Exim Bank. In 1986, IFC set up a US$15 million agency credit line with Exim Bank and provided loans to 18 SMEs. "Exim Bank has an excellent relationship with IFC," remarked Ms. Vakil. "This credit line will be used by Exim Bank to enhance the export capabilities of a pool of SMEs." "We are very pleased to be associated with this project," said Mr. Lindbaek. "We consider Exim Bank to be a highly efficient conduit for IFC and view its success in serving SMEs as central to the ongoing economic liberalization program of the Indian Government." IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries. IBRD IDA IFC MIGA ICSID