Reserve Bank Of India
A.P. (DIR Series) Circular No. 22
August 12, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 300 million to the
Government of the Federal Democratic Republic of Ethiopia
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June
13, 2013 with the Government of the Federal Democratic Republic of Ethiopia, for
making available to the latter, a Line of Credit (LOC) of USD 300 million (USD
Three hundred million only) for financing eligible goods, including machinery
and equipment and services(including preparation of the Detailed Project Report)
including consultancy services from India for the purpose of financing new Ethio-Djibouti
Railway Line [the Asaita-Tadjourah portion] Project in Republic of Ethiopia/
Republic of Djibouti. The goods, services, machinery and equipment 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 including consultancy 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 percent goods and 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 July 15, 2013 and the
date of execution of Agreement is June 13, 2013. 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 the case of project exports and
72 months (June 12, 2019) from the execution date of the Credit Agreement in the
case of supply contracts.
- Shipments under the LOC will have to be declared on GR / SDF Forms as per
instructions issued by the 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 in 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 the 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,
(C. D. Srinivasan)
Chief General Manager
RBI/2013-14/178