With loans to some countries extended through Exim Bank of India being classified as “doubtful debt” in 2023-24, the Ministry of External Affairs has provided Rs9,013.72 crore to the financial institution after it invoked Government of India guarantee on these loans.
Banking & Finance
With loans to some countries extended through Exim Bank of India being classified as “doubtful debt” in 2023-24, the Ministry of External Affairs has provided Rs9,013.72 crore to the financial institution after it invoked Government of India guarantee on these loans. The Exim Bank had to invoke the guarantees after decade-plus old loans extended to some African countries turned into non-performing assets. The MEA has provided a further Rs4,383.40 crore in 2024-25 towards payment to Exim Bank towards guarantees that may be invoked against doubtful debts, indicating more such loans to countries might get classified as NPAs in the coming years.
Once guarantees are invoked by a financial institution or a public sector undertaking, the funds are paid out of the Guarantee Redemption Fund established in the Public Account of India since 1999-2000.
Founded- 1982; HQ- Mumbai
Managing Director- Harsha Bangari
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