RBI/2018-19/212 A.P. (DIR Series) Circular No.35
June 13, 2019
All Category – I Authorised Dealer Banks Madam/Sir
Exim Bank's Government of India supported Line of Credit of USD 150
million to the Government of the Republic of Ghana
Export-Import Bank of India (Exim Bank) has entered into an agreement dated
April 05, 2019 with the Government of the Republic of Ghana for making available
to the latter, a Government of India supported Line of Credit (LoC) of USD 150
million (USD One Hundred and Fifty Million only) for the purpose of financing
strengthening of Agriculture Mechanization Services Centres in the Republic of
Ghana. Under the arrangement, financing of export of eligible goods and services
from India, as defined under the agreement, would be allowed subject to their
being eligible for export under the Foreign Trade Policy of the Government of
India and whose purchase may be agreed to be financed by the Exim Bank under
this agreement. Out of the total credit by Exim Bank under this agreement,
goods, works and services of the value of at least 75 per cent of the contract
price shall be supplied by the Seller from India and the remaining 25 per cent
of goods and services may be procured by the Seller for the purpose of the
eligible contract from outside India.
2. The Agreement under the LoC is
effective from June 03, 2019. Under the LoC, the terminal utilization period is
60 months after the scheduled completion date of the project.
3.
Shipments under the LoC shall be declared in Export Declaration Form as per
instructions issued by the Reserve Bank from time to time.
4. No agency
commission is payable for export under the above LoC. However, if required, the
exporter may use his own resources or utilize balances in his Exchange Earners’
Foreign Currency Account for payment of commission in free foreign exchange.
Authorised Dealer Category- I (AD Category- I) banks may allow such remittance
after realization of full eligible value of export subject to compliance with
the extant instructions for payment of agency commission.
5. AD Category
– I banks may bring the contents of this circular to the notice of their
exporter constituents and advise them to obtain complete details of the LoC from
the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005 or from their website www.eximbankindia.in
6. The directions contained in this circular have been issued under section
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions/ approvals, if any, required under any
other law.
Yours faithfully
(R K Moolchandani) Chief General Manager
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