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|May 14, 1998||
New US export finance approvals to India halted
The Export-Import Bank of the United States has decided to stop issuing approvals for financing US export to India after President Bill Clinton imposed sanctions on India for conducting nuclear tests.
The sanctions will immediately affect approximately $ 500 million of pending US loans or loan guarantees to India.
The finances currently affected are for a Boeing sale to Jet Airways, India's biggest private airline, and a wireless loop system to be put together by Hughes Network Systems.
An additional $ 3.5 billion worth of exports, projected based on indications of interest received by the bank, could be affected in a longer run.
The Exim bank will not give approval to loans or credit insurance in support of US exports to India. Sanctions take effect immediately regarding all new business in the public and private sector. Financing for export transactions to India authorised prior to may 13 is not affected by the sanctions, says an Exim bank statement.
The decision was taken by the bank's board of directors. The US secretary of state also notified the Exim bank that the sanctions required under the ban act be invoked.
The Exim bank authorises financing to support $ 15 billion worth of US export worldwide. The sanctions will also hit finances to India through the Overseas Private Investment Corporation.
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