RBI/2006-2007/312
A. P. (DIR Series) Circular No. 36
April 05, 2007
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit (LOC) of USD 7.50 million to
the Government of Jamaica
- Export-Import Bank of India (Exim Bank) has concluded an agreement dated January
19, 2007 with the Government of Jamaica, making available to the latter, a Line
of Credit (LOC) of USD 7.50 million (USD Seven million five hundred thousand
only) to finance purchase of water pumps by National Water Commission, Jamaica
which are eligible for export under the Foreign Trade Policy of the Government
of India and which may be agreed to be financed by Exim Bank in terms of this
Agreement. Out of the total credit, not less than 85 per cent shall be utilised
for financing purchase of eligible goods from India or be of Indian origin.
- The credit agreement under the LOC is effective from March 2, 2007. The
terminal date for opening of Letters of Credit will be March 1, 2009 (24 months
from the effective date) and the terminal date for disbursement will be January
18, 2013 (72 months from the date of execution of the Credit Agreement i.e.
January 19, 2007)
- 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