RBI/2006-2007/309
A. P. (DIR Series) Circular No. 35
April 05, 2007
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit (LOC) of USD 25 million to the Government of the
Republic of Guinea Bissau
- Export-Import Bank of India (Exim Bank) has concluded an agreement dated January
13, 2007 with Government of the Republic of Guinea Bissau, making available to
the latter, a Line of Credit (LOC) of USD 25 million (USD Twenty five million
only) for financing projects at Guinea Bissau viz. i) US $ 10 million for an
electricity project, ii) US $ 5 million for the food processing / agricultural
sector, and (iii) the balance amount of US $ 10 million for project(s) proposed
by the Government of the Republic of Guinea Bissau and as may be agreed by
Government of India / Exim Bank, and whose purchase may be agreed to be financed
by Exim Bank under this Agreement to the extent of at least 85 per cent of the
amount of the Credit and which are eligible for export under the Foreign Trade
Policy of the Government of India.
- The Credit Agreement under the LOC is effective from March 15, 2007. Under the
LOC, the terminal utilisation period will expire at the end of 48 months from
the scheduled completion date(s) of contract(s) in case of project exports and
January 12, 2013 (72 months from date of execution of Credit Agreement i. e.
January 13, 2007) in case of other supply contracts.
- Shipments under the credit will have to be declared on GR / SDF Forms as per
instructions issued by Reserve Bank from time to time.
- No agency commission shall be payable in respect of exports financed under the
above line of credit. However, if required, the exporter may use his own
resources or utilise balances of his EEFC account for payment of commission in
free foreign exchange. Authorised Dealer Category - I (AD Category - I) banks
may allow such remittance after realisation of full payment of contract value
subject to compliance of prevailing instructions on payment of agency
commission.
- AD Category - I banks may bring the contents of this circular to the notice
of their exporter constituents and advise them to obtain full details of the
Line of Credit from Exim Bank's office at Centre One, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai 400 005.
- The Directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and is without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge