India Exim to promote trade with Eastern Europe

The export-import bank of India (Exim bank) will confirm export letters of credit from pre-approved banks in the Former Soviet Union (FSU) and Central and Eastern Europe (CEE) countries through a new programme between the Exim bank and the European Bank for Reconstruction and Development (EBRD). The arrangement aims to boost Indian exports to a region considered to be high-risk.

The Export Credit Loan Arrangement Technique (ECLAT) sees the Exim Bank confirming and guaranteeing letters of credit, issued by 30 banks in FSU and CEE, including the American Bank of Albania, the International Bank of Azerbaijan Republic and the Bank of Georgia. The importer's bank will seek confirmation of the letter of credit from the Exim Bank, and the beneficiary of the letter of credit, the Indian exporter, is then able to negotiate export finance from a commercial bank on the strength of the Exim Bank's confirmation and guarantee.