Exim Bank To Recast $1.3 Billion Sri Lanka Loans

Exim Bank To Recast $1.3 Billion Sri Lanka Loans
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Exim Bank is thinking of restructuring its $1.3 billion exposure to Sri Lanka. Sri Lanka currently is under crisis; however, they are not planning to have any exposure to Ukraine or Russia. There is a close restructuring of Sri Lanka exposure, said Harsha Bangari, MD India Exim bank She said that she was waiting for the signal from the government about restructuring. The country is facing its worst foreign currency crisis. Exim’s exposure is approx $1.3 billion. As of now, there are no dues; restructuring can be in the form of deferment of repayment, says senior Exim officials. 

Exim is expecting to spread its activities when it gets back to factoring. It is a comfort letter for the exporter’s fund, making the export finance procedure easy and less risky. They are in the process of setting up a factoring business. The main focus will be on overseas funding, clarified Bangari.

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Still, they are in the dilemma of performing business activities through a Bank or separate entity though they have got board approvals, said Harsha Bangari.

Exim has started a TAP program, a trade Assistance Programme to support the MSME sector. In this program, tradelines will be used to participate overseas banks and institutions in the growing marketing and credit enhancement to participate in commercial banks in India to capture payment obligations.

Exim report says that there was a 13 per cent growth during 2021-22, and they are targeting higher growth in business this year.

Looking at the current market scenario, Harsha Bangari said they are looking at raising $3 billion in the financial year 2023, which can be done through bond loans and multilateral agencies. 

The government of India established Exim bank, and Exim bank acts as a growth engine for industries and small and medium enterprises. 

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