EXIM Bank boosts credit to exporters hit by US tariffs, eyes Africa expansion

[ad_1] India's Export-Import (EXIM) Bank is increasing credit support to exporters and helping them diversify into newer markets, particularly Africa, following punitive U.S. tariffs on imports from the South Asian nation, a top official said. State-owned EXIM Bank - which provides export financing and backs loans granted by commercial lenders to buyers of Indian goods - has eased risk limits on at least a fourth of its overseas banking partners, said Tarun Sharma, the deputy managing director at EXIM Bank of India. "Wherever there's a requirement, we are working to see how do we give enhanced limits to the exporters," Sharma said in an interview. The bank has partnerships with more than 100 overseas banks across 54 countries under its trade assistance program. EXIM Bank is also offering more shorter-tenure credit and credit against future receivables to address exporters' immediate working capital needs, Sharma said.The U.S., India's largest export partner, imposed a 50% tariff on Indian exports on August 27. Businesses in sectors such as textiles, chemicals, gems and jewelry, and fisheries, faced with job cuts and uncertain order flows, have scrambled to find new buyers in markets across Europe, Africa and Asia.Live Events The government has yet to announce any financial or credit support for affected exporters but has directed banks to ease credit access for the sector. Exporters initially coped with the tariff shock by frontloading shipments to U.S. clients before the August deadline. However, Sharma said longer-term strategies involve shifting export capabilities to "non-traditional" markets such as Africa and Latin America. DIVERSIFYING INTO AFRICA EXIM Bank is in talks with African banks to increase its presence in the region, aiming to support diversification efforts.While EXIM Bank currently finances government projects in over 40 African countries, Sharma said it is now shifting its focus in the continent to commercial financing and trade facilitation.The lender is exploring credit lines ranging from $100 million to $150 million for regional banks, or $25 million to $50 million for smaller local banks, and expanding partnerships with major lenders across the region including the Afrexim Bank (African Export-Import Bank) and the Africa Finance Corporation (AFC), Sharma said.Indian exporters, facing challenges from U.S. tariffs, have shown "greater receptivity for dialogue and moving ahead to diversify into African markets" with an incremental export opportunity of over $31 billion, Sharma said.Add as a Reliable and Trusted News Source [ad_2] Source link Follow Us: https://facebook.com/gagab2b https://youtube.com/gagab2b https://gagab2b.com https://gagab2b.com/import-export-news/import-export-india-news/exim-bank-boosts-credit-to-exporters-hit-by-us-tariffs-eyes-africa-expansion/?feed_id=3311&_unique_id=68e3247eb7092