RBI/2009-10/328
A.P. (DIR Series) Circular No.37
February 25, 2010
To
All Category – I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 25 million
to the Government of the Democratic Republic of Congo
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated August
27, 2009 with the Government of the Democratic Republic of Congo making
available to the latter, a Line of Credit (LOC) of USD 25 million (USD twenty
five million) for financing eligible goods, machinery, equipment and services
including consultancy services from India for the purpose of installation of
hand pumps and submersible pumps in the Democratic Republic of Congo. The goods
and services including consultancy services from India for exports under this
Agreement are those 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
the Exim Bank under this Agreement. Out of the total credit by Exim Bank under
this Agreement, the goods and services of the value of at least 85 per cent of
the contract price shall be supplied by the seller from India, and the remaining
15 per cent goods and services (other than consultancy services) may be procured
by the seller for the purpose of Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from January 20, 2010 and
date of execution of the Agreement is August 27, 2009. Under the LOC, the last
date for opening of Letters of Credit and Disbursement will be 48 months from
the scheduled completion date(s) of contract(s) in case of project exports and
72 months (August 26, 2015) from the execution date of the Credit Agreement in
case of supply contracts .
- Shipments under the LOC will have to be declared on GR / SDF Forms as per
instructions issued by Reserve Bank from time to time.
- No agency commission is payable under the above LOC. However, if required,
the exporter may use his own resources or utilize balances of his Exchange
Earners’ Foreign Currency Account for payment of commission in free foreign
exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such
remittance after realization of full payment of contract value subject to
compliance with the prevailing instructions for 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 or log on to www.eximbankindia.in.
- 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 are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge