New Delhi, June 7 (IANS): The Cabinet on Wednesday approved the proposed Memorandum of Understanding (MoU) between Export-Import Bank of India (EXIM Bank) and Export-Import Bank of South Korea (KEXIM) for export credit of $9 billion for infrastructural development in India and for the supply of goods and services as part of projects in third countries.

The MoU is proposed to be signed between the two banks during the forthcoming visit of Finance Minister Arun Jaitley to Seoul, South Korea, on June 14-15 for the Annual Financial Bilateral Dialogue, an official statement said here.

The decision is expected to promote the country's international exports, and deepen political and financial ties between India and South Korea. 

"The export credit will be utilised through lending by EXIM Bank for promoting projects for priority sectors, including smart cities, railways, power generation and transmission etc., in India and for the supply of goods and services from India and South Korea as part of projects in third countries," the statement said.

Under the implementation strategy, the parties to the MoU will hold mutual consultations to structure the financial assistance, review the existing arrangements and related procedures.

EXIM Bank will identify viable projects in India. For projects in third countries, both parties will jointly identify viable projects, the statement added.