| Date: |
23-03-2015
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| Notification No: |
RBI/2014-15/509 A.P. (DIR Series) Circular No. 86
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/509 |
| Subject: |
Exim Bank's Line of Credit of USD 198.96 million to the Myanma Foreign Trade Bank (MFTB), Myanmar
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RBI/2014-15/509
A.P. (DIR Series) Circular No. 86
March 23, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 198.96 million to the Myanma
Foreign Trade Bank (MFTB), Myanmar
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
December 11, 2013 with the Myanma Foreign Trade Bank (MFTB), Republic of Union
of Myanmar, for making available to the latter, a Line of Credit (LOC) of USD
198.96 million (USD One Hundred and Ninety Eight Million and Nine Hundred and
Sixty Thousand) for financing 18 irrigation projects (16 ongoing and 2
rehabilitation) in Republic of Union of Myanmar. The goods, machinery, equipment
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 including consultancy services of the
value of at least 50 per cent of the contract price shall be supplied by the
seller from India and the remaining 50 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 February 26,
2015. Under the LOC, the last date for opening of letters of credit and
disbursement will be 48 months from the scheduled completion date of
contract in the case of project exports and 72 months (December 10, 2019)
from the execution date of the Credit Agreement in the case of other supply
contracts.
- Shipments under the LOC will have to be declared on EDF/ 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,
(A. K. Pandey)
Chief General Manager
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