The Nation · Public debt · Bilateral
India EXIM Bank (Lines of Credit)
भारत निर्यात-आयात बैंक
Lines-of-credit framework. Power transmission, roads, petroleum infrastructure.
Outstanding
USD 700M
as of FY 2024/25
Share of ext. debt
7%
cited
Currency
USD
FX exposure
Major loans
3
cited
How it works
India EXIM Lines of Credit (LoCs) finance specific projects with a procurement-tying clause: a defined share of works and equipment must be sourced from India. Terms are softer than commercial but harder than IDA/JICA. The 2014, 2015 and 2017 LoCs (USD 1B + USD 750M + USD 100M) anchor the current stock; the Motihari-Amlekhgunj petroleum pipeline and cross-border transmission lines are the visible results.
The short version
India lends Nepal money on the condition that a big share of the work and equipment must come from India. This has built things like the petroleum pipeline and cross-border power lines.
Typical loan terms
LoC framework: 1.75% interest · 20-year maturity · 5-year grace
Headline terms — individual loans may vary. Per-loan detail follows.
Major loans
2014 LoC
2014
USD 1B
Roads, transmission, irrigation
2015 post-earthquake LoC
2015
USD 750M
Earthquake recovery infrastructure
2017 LoC
2017
USD 100M
Specific project pipeline
What to watch
- ·Tied-procurement clause — value-for-money has historically been criticised in OAGN reports.
- ·LoC implementation rate — utilisation of committed LoC tranches has been slower than scheduled.
Sources · cited verbatim
Ministry of Finance Nepal — PDMO — Public Debt Bulletin — bilateral creditors
Open release checked 2025-01-15Export-Import Bank of India — Nepal — Lines of Credit overview
Open release checked 2025-01-15