India Offers Line of Credit to Cuba for Solar Park

India has offered a line of credit to Cuba of USD $75 million for the financing of solar parks. An agreement signed between the Export-Import Bank of India, Exim Bank, and Banco Exterior De Cuba in July last year came into effect on December 12, the RBI said in a statement on Thursday.

Banco Exterior De Cuba is a state-owned banking agency in Cuba which deals with financing to companies in all sectors of the economy and operates under a general license issued by Banco Central de Cuba.

“Exim Bank has entered into an agreement dated July 16, 2019 with Banco Exterior De Cuba, for making available to the latter, Government of India supported Line of Credit (LoC) of USD 75 million for the purpose of financing installation of 75 MW Photovoltaic Solar Parks in the Republic of Cuba,” it said.

Under the LoC, the terminal utilization period is for 60 months after the scheduled completion date of the project.

As per the agreement, financing of export of eligible goods and services from India would be allowed subject to eligibility for export under the Foreign Trade Policy.

Out of the total credit line offered by Exim Bank under the agreement, goods, works and services of the value of at least 75 per cent of the contract price can be supplied by the seller from India, and the remaining 25 per cent of goods and services may be procured by the seller from outside India, the statement added.

Exim Bank of India, was founded in March, 1982. It is a specialized export credit agency for India and plays a role of international trade in India’s economic development

A part of this article was first published in the India Times. It has been, in part, edited.