RBI/2006-07/323
A.P. (DIR Series) Circular No. 39
April 16, 2007
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit (LOC) of USD 11 million to the Government of the
Republic of Senegal
- Export-Import Bank of India (Exim Bank) has concluded an agreement dated January
15, 2007 with Government of the Republic of Senegal, making available to the
latter, a Line of Credit (LOC) of USD 11 million (USD Eleven million only) for
financing Indian exports to Senegal to support the women poverty alleviation
programme and acquisition of 400 vehicles from India which are eligible for
export under the Foreign Trade Policy of the Government of India and whose
purchase may be agreed to be financed by Exim Bank under 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 February 20, 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 14, 2013 (72 months from date of execution of Credit Agreement i. e.
January 15, 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 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 Gangaharan)
Chief General Manager-in-Charge