Credit Expansion

 

Korea Eximbank President Lee Duk-hoon (left) poses for a photo with SBI President Arundhati Bhattacharya after signing the agreement

The Export-Import Bank of Korea (Korea Eximbank) announced that it has signed a deal with State Bank of India (SBI) on Jan. 13 (local time) to expand the credit limit for loans by US$300 million (361.2 billion won).

With the agreement between the two banks, the total credit line from Korea Eximbank to SBI has expanded to US$1 billion (1.2 trillion won), the second largest facility between banks in history.

A Korea Eximbank official said, “With the latest deal, SBI will be able to supply funds more smoothly to local companies importing Korean goods and services and Korean companies’ local branches. We expect that it will greatly help Koran companies push into the Indian market and activate their businesses there.”

An Interbank Export Loan is the system that Korea Eximbank set up the credit line with local banks in other countries, and local banks raise funds from Korea Eximbank on more favorable terms and grant loans to local companies which have business relations with Korean companies.

Founded in 1921, SBI is the largest state-run commercial bank in India. The bank is carrying out government-led projects through extensive networks at home and abroad as well as general commercial bank loans.

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