The Export-Import Bank of Korea (KEXIM) signed an EDPF agreement to provide $3 billion over five years with the Bangladeshi Finance Ministry, KEXIM said on March 21.
As one of the financing instruments for Korea’s concessional loans, EDPF provides concessional loans characterized by mid- to long-term repayment periods together with low interest rates to projects in developing countries.
The projects contribute to industrial development and promote economic exchanges between developing countries and Korea.
Unlike EDCF, a government funding instrument, EDPF is an assistance loan utilizing funds KEXIM raises from the financial market. The government makes up for the borrowing costs and interest rate difference.
Earlier in August 2022, the government designated priority beneficiary countries, such as Bangladesh and Vietnam, to boost EDPF loans and introduced a cooperation framework regime designed to stipulate loan caps and period. It was the first time KEXIM inked a cooperation framework on EDPF in accordance with the step.
KEXIM is weighing a plan to extend a $2 billion EDPF deal with the Vietnamese Finance Ministry by the first half of this year. If the deal is finalized, KEXIM plans to explore candidate projects, such as light rail and metro projects.
A KEXIM official said, “As Bangladesh is expanding investments into infrastructure using long-term, soft assistances, KEXIM’s striking a $3 billion EDPF agreement is expected to give a great leg-up to Korean companies’ participation in large-sized infrastructure projects in Bangladesh, and we’re discussing a few candidate projects in the transportation and water resources sectors, such as railway bridge construction, Dhaka metro and waste water treatment projects with the Bangladeshi government.”
KEXIM Ramps Up Support to Korean Firms’ Exploration of Markets in Central, South America
The Export-Import Bank of Korea (KEXIM) expanded its financial network for Korean companies’ new market entry in Central and South America in Panama, the venue of the 2023 Annual Meeting of the Boards of Governors of the Inter-American Development Bank (IDB) and IDB Invest, KEXIM said on March 19.
The 2023 IDB Annual Meeting took place from March 16 to March 19. IDB is an international body, established in 1959, designed to spur economic and social development and economic integration in Central and South America. Korea joined IDB in 2005 and IDB has 48 member countries.
KEXIM Chairman Yoon Hee-sung met with IDB Invest CEO James Scriven and inked a relending agreement at the Panama Convention Center on March 16. Under the deal, KEXIM is expected to offer relending loans to Korean product importers through 96 banks in 21 Central and South American countries, guaranteed by IDB Invest.
KEXIM Chairman Yoon said, “Amid worsening outside conditions, caused by the sagging global economy, Korean export companies will be able to enter Central and South American markets without worry about uncollectable export bills, and We’ll provide full support to Korean companies’ transactions in the region by striking the re-lending agreement with IDV Invest at a time when the nation’s export drive is essential.”
KEXIM Overhauls External Loan Guarantees to Ramp Up Export Support
The Export-Import Bank of Korea (KEXIM) is stepping up Korean companies’ winning order capability by expanding external loan guarantee caps and raising its capital to 2 trillion won.
KEXIM said on March 28 that a Cabinet meeting gave a go-ahead to a revision of the act on KEXIM, calling for overhauling its external loan guarantee regime.
_수출입은행 한국 기업 중남미新시장 개척 금융지원 강화.jpg)
