EXIM Bank of India and Uganda Development Bank have today signed an agreement for a credit facility of USD 5 Million to finance the importation of goods and services from the Republic of India.
The mission of UDBL, in delivering the National Development Plan (NDP II), is to accelerate socio-economic development through sustainable financial interventions in key growth sectors including primary agriculture and agro-processing, infrastructure development and industrialization at attractive terms. UDBL continues to diversify its funding base, and therefore actively seeks funding partners to compliment the capitalization it receives from the Government of Uganda, this with the view to avail relatively cheaper funds for on-lending to Ugandan enterprises.
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To this end, the Bank approached The Export – Import (EXIM) Bank of India, who have approved a 7-year Line of Credit in the amount of US$ 5 Million (Approx. Ugx 20 billion), to finance the importation of goods and services from the Republic of India.
Export- Import Bank of India (EXIM) 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.
The funding will further bolster the capacity of UDBL to provide medium and long term development finance to facilitate production and to support the Small and Medium sized Enterprises (SMEs) in the country.
UDBL welcomes this Line of Credit. And further heartedly conveyed its gratitude towards the EXIM Bank of India, here represented by Mr. Depak Kujur and M/s Divya Hariharam; and indeed to the Government and People of India, for this financial and other ongoing support that aims to catalyze business between the two sister countries. Uganda enjoys very warm relations with India and this Line of Credit is clear testament of the same. We are confident that Uganda will derive various socio-economic dividends from this funding.
EXIM Bank of India and UDBL have a shared objective of serving the public interest. This MoU will enable the two entities to achieve common goals that will define and establish arrangements to finance the importation of goods and services from the Republic of India.
Mrs. Patricia Ojangole, Managing Director of the UDBL Board of Directors, called upon Ugandan entrepreneurs involved in businesses that require inputs from India, in the form of raw-materials, tools, equipment and technology, to approach UDBL and take full advantage of this financing and further reaffirmed that UDBL is fully committed to supporting the Ugandan business community and will continue to seek and avail funding solutions that are relevant to their needs.