Both banks have also entered into another agreement of cooperation, which will provide for exchange of information on business opportunities, co-financing of projects, organising seminars among others for promoting trade and other forms of economic cooperation between the two countries.
The agreements were signed in Mumbai by Exim Bank of India managing director and chief executive officer TC Venkat Subramanian and Exim Bank of Hungary President. Hungary Prime Minister Peter Medgyessy, who is currently on a visit to India, was also present in the signing ceremony.
Under the LoCs, importers of both countries can avail themselves of credit facility, up to 85 per cent of contract value, for import of capital goods, industrial manufactures and services, from the other country.
Indias exports to Hungary during 2002-03, amounted to $48.6 million. The main items in Indias export basket to Hungary were readymade garments of cotton, cotton yarn fabrics, drugs, pharmaceuticals and fine chemicals, manufacture of metals, transport equipment and plastic and linoleum products.
Indias imports from Hungary during the same period amounted to $24 million, the main items of import being electronic goods, paper boards and manufactures, medicinal and pharmaceutical products, electrical machinery and organic chemicals. Hungary is scheduled to join the European Union on May 1, 2004.