Money & Banking

Exim Bank gets ₹15,000-cr credit line; RBI to roll-over its refinance to SIDBI

Mumbai | Updated on May 22, 2020 Published on May 22, 2020

In a bid to ease constraints on market participants and channel liquidity to various sectors of the economy that are impacted by Covid-19-related dislocations, the Rerserve Bank of India (RBI) has decided to extend a ₹15,000-crore line of credit to the Export-Import Bank of India (EXIM Bank) for90 days from the date of availment, with rollover up to a maximum period of one year.

The central bank also decided to roll over the ₹15,000-crore special refinance facility given to Small Industries Development Bank of India (SIDBI) at the end of the 90th day for another period of 90 days.

Global trade

The central bank observed that EXIM Bank provides financial assistance to exporters and importers with a view to promoting the country’s international trade. In view of the pandemic, however, global trade has contracted sharply and global financial markets have turned highly volatile and risk averse, especially to Emerging Market Economies.

As Exim Bank predominantly relies on foreign currency resources raised from international financial markets for its operations, the RBI said it is facing challenges to raise funds in international debt capital markets. Hence, the line of credit is being extended so as to enable the bank avail a US dollar swap facility to meet its foreign exchange requirements.

Small industries

The RBI said SIDBI plays an important role in meeting the long-term funding requirements of small industries. In view of the tightening of financial conditions in the wake of the pandemic, and difficulties in raising resources from the market, the RBI had announced a special refinance facility (provided at the RBI’s policy repo rate) of ₹15,000 crore to SIDBI for on-lending/refinancing.

According to the central bank, the roll-over of the refinancing facility will provide greater flexibility to SIDBI in its operations.

Published on May 22, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.