Exim Bank has finalised a ₹4,850 crore Line of Credit to the Maldives government for developmental projects, supported by the Government of India.
Exim Bank Extends ₹4,850 Crore LOC to Maldives
The Export-Import Bank of India (Exim Bank), under a Government of India-supported initiative, has executed a Line of Credit (LOC) agreement worth ₹4,850 crore with the Government of the Republic of Maldives. The agreement, dated July 25, 2025, was formally notified by the RBI on September 23, 2026, to authorised dealer banks for operational implementation.
The LOC is intended to finance various developmental and infrastructure projects in the Maldives, reflecting India’s continued strategic and economic engagement with its neighboring countries. Such LOCs are extended on concessional terms and are typically utilised for procurement of Indian goods and services, thereby promoting Indian exports.
Corporate and project finance lawyers should note the expanded scope of India’s foreign development financing. This LOC enhances export opportunities for Indian firms and requires careful compliance with end-use monitoring and disbursement conditions under FEMA and Exim Bank guidelines.
