Exim Bank to provide $100 million loan to Mauritius for procuring defence items

The government will provide a soft loan of USD 100 million to Mauritius for the procurement of defence items by the island nation.

The Export-Import Bank of India (Exim Bank) has entered into an agreement for USD 100 million line of credit to Mauritius for procurement of defence items from India, the RBI said in a release on Thursday.

The agreement was signed on February 19, 2021, the RBI said.

Under the agreement, India will export eligible goods and services to Mauritius. Line of credit or soft loans are charged at nominal rate of interest.

"Out of the total credit by Exim Bank under the agreement, goods, works and 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 of goods and services may be procured by the seller for the purpose of the eligible contract from outside India," it said.

The agreement under the LoC is effective from July 22, 2021.