India signs $42 mln loan with Congo following debt relief

Thu Aug 5, 2010 6:48pm GMT

* India to disburse $263 mln credit lines for 3 projects

* Congo must source 75 pct of goods, services from India

* Debt relief frees up $262 mln of 2010 budget -minister

By Katrina Manson

KINSHASA, Aug 5 (Reuters) - India has signed a deal with Democratic Republic of Congo to extend a $42 million credit line for building a hydroelectric plant, Congolese and Indian officials said on Thursday.

The deal falls under a $263 million loan commitment from India that it agreed with Congo late last year.

Congo, which won $8 billion of debt relief granted by the World Bank and International Monetary Fund (IMF) last month, is looking to Asia to help rebuild its infrastructure after years of corrupt dictatorship and a devastating 1998-2003 war.

The deal marks the third loan from India, following $25 million for 3,000 water pumps and $33.5 million for 346 Indian-made buses and a cement plant last year.   Continued...

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