- Exim Bank has entered into an agreement on 16th July with Banco Exterior De Cuba To extend this line of credit (Loc)
- This LoC will finance installation of 75 MW Photovoltaic Solar Parks in the Republic of Cuba
As per a report by the Economic Times, India has extended a line of credit (LoC) of over 500 crore ($75 million) to Cuba for financing solar parks. RBI said that Export-Import Bank of India (Exim Bank) and Banco Exterior De Cuba had signed an agreement in July last year which came into effect from 12th December. Banco Exterior De Cuba is a nominated agency of the government of Cuba.
75 MW Photovoltaic Solar Parks
The report said that RBI also said that Exim bank entered into the agreement on 16th July 2019 with Banco Exterior De Cuba to support a Line of Credit (LoC) of $75 million. It added that this has been done to finance installation of 75 MW Photovoltaic Solar Parks in the Republic of Cuba.
Utilisation period of 60 months
According to the report, under the LoC, the terminal utilisation period will be 60 months after the scheduled completion date of the project. The report also said that, as per the agreement, , financing of export of eligible goods and services from India will be allowed. This will be done after being subject to their being eligible for export under the Foreign Trade Policy.
Out of the total credit by Exim Bank, works and services of the value of at least 75 per cent of the contract price can be supplied by the seller from India said the report. The remaining 25 per cent of goods and services may be procured by the seller from outside India as per the statement by RBI.
