New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Recently India has decided to extend a Line of Credit

    (LOC) to Sri Lanka, which of the following institution had signed the LOC agreement with Sri Lankan Government?
    A Export-Import Bank of India Correct Answer Incorrect Answer
    B State Bank of India Correct Answer Incorrect Answer
    C Punjab National Bank Correct Answer Incorrect Answer
    D Reserve Bank of India Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    India has decided to extend a Line of Credit (LOC) of $55 million to Sri Lanka for the procurement of urea. An LOC agreement was signed between Government of Sri Lanka (GOSL) and the Export-Import Bank of India at Colombo. This LOC will help the GOSL secure urea fertiliser for the ongoing paddy sowing Yala season. A line of credit (LOC) is a preset borrowing limit that can be tapped into at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. Exim Bank is a specialized financial institution wholly owned by the Government of India with presence in Indian and foreign cities around the world. It was set up in 1982, for the purpose of financing, facilitating and promoting India’s international trade.

    Practice Next

    Relevant for Exams: