Korea Eximbank offers financing to Africa
The Export-Import Bank of Korea (Korea Eximbank) is introducing various financing programs for African countries not only to strengthen trade ties with the continent but also to help establish infrastructure there.
According to Eximbank, Thursday, it has signed a credit facility agreement worth $200 million with the African Export-Import Bank (Afreximbank) to strengthen trade ties with the continent at BEXCO in Busan, Wednesday.
Under the deal, Korea Eximbank is set to loan the $200 million through Afreximbank to help local companies there import Korean products.
Korea Eximbank had a similar deal worth $100 million with Nigerian Zenith Bank, and now expects the new agreement with Afreximbank will facilitate Korean firms’ entry into the continent.
“Afreximbank has 49 countries as member states on the continent,” a Korea Eximbank official said.
“It will boost not only local firms there but also Korean companies who are interested in expanding their business into the continent.”
Korea Eximbank also concluded another deal on the day with the Senegal government to loan $85.5 million as an economic development cooperation fund (EDCF) to help build a national cancer center in the country.
Korea Eximbank also had another signing ceremony for the deal with Senegal Ambassador to Korea Mamadou Gueye Faye at BEXCO.
Under the nation’s Foreign Economic Cooperation Fund Act enacted in 1987, the Korean government has since supported developing countries in finance with long-term low-interest rate loans through the EDCF.
As of April, the Korean government has since supported 54 countries with 395 programs. A total of 15.9 trillion won ($14.7 billion) has been granted under the programs of the EDCF.