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    ITF Assignment - SAIKAT SAHA (A44)

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    Saikat Saha
    The document discusses the roles and functions of Export Import (EXIM) Banks. EXIM Banks are government or semi-government bodies that facilitate foreign trade in a country by providing financing instruments to exporters. They focus solely on foreign trade. The EXIM Bank of India was established in 1982 to promote foreign trade and investment. It provides term loans to exporters, underwrites shares/bonds of export companies, and gives overseas buyers credit to import Indian goods and services. The bank also offers lines of credit and re-lending options to foreign banks to fund imports from India. Its key schemes include financing capital goods, providing marketing advisory services, and export advisory services.

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    ITF Assignment - SAIKAT SAHA (A44)

    Uploaded by

    Saikat Saha
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    The document discusses the roles and functions of Export Import (EXIM) Banks. EXIM Banks are government or semi-government bodies that facilitate foreign trade in a country by providing financing instruments to exporters. They focus solely on foreign trade. The EXIM Bank of India was established in 1982 to promote foreign trade and investment. It provides term loans to exporters, underwrites shares/bonds of export companies, and gives overseas buyers credit to import Indian goods and services. The bank also offers lines of credit and re-lending options to foreign banks to fund imports from India. Its key schemes include financing capital goods, providing marketing advisory services, and export advisory services.

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    ITF Assignment - SAIKAT SAHA (A44)

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    The document discusses the roles and functions of Export Import (EXIM) Banks. EXIM Banks are government or semi-government bodies that facilitate foreign trade in a country by providing financing instruments to exporters. They focus solely on foreign trade. The EXIM Bank of India was established in 1982 to promote foreign trade and investment. It provides term loans to exporters, underwrites shares/bonds of export companies, and gives overseas buyers credit to import Indian goods and services. The bank also offers lines of credit and re-lending options to foreign banks to fund imports from India. Its key schemes include financing capital goods, providing marketing advisory services, and export advisory services.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views3 pages

    ITF Assignment - SAIKAT SAHA (A44)

    Uploaded by

    Saikat Saha
    The document discusses the roles and functions of Export Import (EXIM) Banks. EXIM Banks are government or semi-government bodies that facilitate foreign trade in a country by providing financing instruments to exporters. They focus solely on foreign trade. The EXIM Bank of India was established in 1982 to promote foreign trade and investment. It provides term loans to exporters, underwrites shares/bonds of export companies, and gives overseas buyers credit to import Indian goods and services. The bank also offers lines of credit and re-lending options to foreign banks to fund imports from India. Its key schemes include financing capital goods, providing marketing advisory services, and export advisory services.

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    INTERNATIONAL TRADE FINANCE

    Assignment

    Submitted by –
    Saikat Saha
    MBA (FINANCE) A
    Roll - 44

    EXIM Banks: Functions and Roles

    Export Import Banks (EX-IM Banks) refer to government or semi-government bodies


    that ensure the safety and growth of foreign trade in a country. These banks are solely
    focused on the foreign trade and are not involved in the within county transactions. The
    EXIM Banks provide the exporters with customized instruments to safeguard their interest in
    an event of non-payment or default by the importers. Therefore, facilitating easier financing
    for foreign trade is the major function of these type of banks.

    EXIM Bank of India was founded in 1982 as per the Export-Import Bank of India
    Act, 1981 and since its inception has been a major facilitator in promotion of foreign trade
    and investment. Over the years the EXIM Bank has played a major part in promoting the
    small as well as medium scale Indian industries in globalisation efforts.

    ORGANISATION –

    The Board of Directors consists of a chairman, a managing director, two deputy


    managing directors; one director each nominated by the Reserve Bank of India; IDBI Bank
    Ltd. and ECGC Ltd.; and not more than 12 directors nominated by the Central Government
    of, whom 5 directors are Central Government officials; not more than 3 directors are from
    commercial banks; and up to 4 directors are professionals with experience in export / import
    or financing.

    1
    OBJECTIVES –

    a. To ensure the integrated and co-ordinated approach in solving problems


    encountered by Indian companies engaged in the export business.
    b. To pay specific attention to the exports of capital goods.
    c. Export projection.
    d. To facilitate and encourage the export of technical services and joint ventures.
    e. To extend buyers’ credit and lines of credit.
    f. To tap domestic and foreign markets for resources for the development of the
    Indian export sector.

    FUNCTIONS –

    a. It provides financial assistance to exporters of plant, machinery and related


    products and services in the form of term-credit.
    b. Underwriting the issue of shares, stocks, bonds and debentures of companies
    involved in export business.
    c. The bank gives overseas buyers credit for import of Indian capital and related
    goods.
    d. Developing and financing export-oriented industries.

    ROLE of EXIM BANK IN INTERNATIONAL TRADE –

    a. Foreign Buyer’s Credit – The foreign buyers are entitled to financial assistance
    to facilitate the import of goods and services on deferred payments.
    b. Line of Credit – The bank offers financial assistance to the overseas financial
    institutions and various government bodies for import of goods and services from
    India.
    c. Re-loaning Options to Foreign Banks – The foreign banks are entrusted with
    funding from the EXIM Bank to provide the same to their clients across the globe
    for the import of Indian goods and services.

    SCHEMES & SERVICES TO PROMOTE INTERNATIONAL TRADE –

    2
    a. Production Equipment Finance Programme – Under this programme, the bank
    finances capital expenditure of export-oriented units. It is structured as an
    umbrella arrangement under which various equipment’s, imported and indigenous
    can be financed.
    b. Marketing Advisory Services – Through this scheme the bank looks to
    strengthen the export capabilities and internal competitiveness of Indian
    companies. It helps Indian exporting organisations in their globalisation efforts by
    assisting them in identifying foreign partners, distributors and buyers for their
    products and services. It also helps the Indian companies in identifying
    opportunities to set up business abroad or in the acquisition on foreign companies.
    c. Export Advisory Services – The Export Advisory Services Group offers a
    diverse range of information, advisory and support services, which enable
    exporters to evaluate international risks, exploit export opportunities and improve
    competitiveness. Value added information and support services are provided to
    Indian projects exporters on the projects funded by multilateral agencies.

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