Strategic co-operation between Hungary and India

Exim Bank of India and Exim Bank of Hungary have signed reciprocal Lines of Credit (LOCs) Agreements of US$ 10 million each in New Delhi on Friday, November 3, 2006. The Agreement was signed by Mr. S.R. Rao, Executive Director of Exim Bank of India and Dr. Zoltan Bodnar, Chief Executive of Exim Bank of Hungary, during the visit of Hungary's Minister of Foreign Affairs, Ms. Kinga Gôncz, to India.

The reciprocal Line of Credit arrangement between Exim Banks of India and Hungary is aimed at catalyzing bilateral trade that requires medium term credit support. Under the LOC, importers of the two countries can avail themselves of credit facility, up to 85% of contract value, for import of capital goods, industrial manufactures and services, from the other country.

India's exports to Hungary during 2005-06 amounted to US$ 83 million, the main items in India's export basket to Hungary were transport equipment, readymade garments, cotton yarn, fabrics and madeups. India's imports from Hungary during 2005-06 amounted to US$ 31 million, the main items of import being organic chemicals, electronic goods, electrical machinery and medicinal & pharmaceutical products

Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Exim Bank has in place 68 LOCs covering 82 countries, with credit commitments amounting to US$ 2.16 billion for promoting India's exports to countries in Africa, Asia, Latin America and Europe.