Exim Bank has inked a ₹4,850 crore Line of Credit (LOC) agreement with the Maldives government, backed by the Government of India, for key development projects, marking a strategic foreign economic initiative.
Exim Bank Sanctions ₹4,850 Crore LOC for Maldives
The Export-Import Bank of India (Exim Bank) has finalised a Line of Credit (LOC) agreement worth ₹4,850 crores with the Government of Maldives on July 25, 2025. The GOI-supported facility, communicated via an RBI circular dated September 23, 2026, is intended for financing developmental projects in the island nation, reinforcing India’s economic and diplomatic outreach in the Indian Ocean region.
Category-I authorised dealer banks have been informed of the LOC to facilitate disbursements, reporting, and compliance under foreign exchange regulations. Such LOCs typically support infrastructure, energy, and capital goods exports from India, serving both developmental diplomacy and domestic export promotion objectives. Projects funded under the LOC are expected to be executed by Indian contractors using Indian goods and services.
Corporate and international trade lawyers should monitor project tenders and financing agreements emerging from this LOC. Legal work may include contract drafting, compliance with procurement guidelines, and risk advisory for exporters availing the funding. The initiative underscores the role of structured finance in India’s foreign economic policy.
