Line of credit for export finance ensures majority reimbursement from India while importer pays a minority share in convertible currency. The Government of India extended a line of credit to the Government of the Lao PDR to finance eligible imports of Indian capital goods, consultancy services and consumer durables. The credit covers 90 per cent of the f.o.b. value with the importer required to pay the remaining 10 per cent in freely convertible currency at L/C opening. Contracts require bilateral approval and submission to the Ministry of Finance; letters of credit must be opened by Lao banks, advised to the State Bank of India, and claims for reimbursement must be supported by a negotiating bank certificate confirming receipt of the importer's share.