Concessional Financing Scheme (CFS) Flashcards
1
Q
What it is
A
An scheme of Mo External affairs+Mo Finance to provide finance to Indian bidders to gain statergic important projects world wide.
2
Q
Which bank helps them
A
EXIM(Export import Bank of India)
3
Q
How this works
A
Mo external identifies the projects and send them to Mo Finances’s Dept of Economic affairs.
If found viable it sends letter to EXIM to help the indian compony to get the bid.
4
Q
Features?
A
Government of India (GoI) provides counter guarantee and interest equalization support of 2% to the EXIM Bank.
Under the Scheme, EXIM Bank extends credit at a rate not exceeding LIBOR (avg. of six months) + 100 bps. The repayment of the loan is guaranteed by the foreign govt.
5
Q
Why in news
A
Govt extende it by 5 yrs so will now run till 2025
