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Interest Rates on Export Credit in Foreign Exchange
Please
refer to paragraph 70 of the statement on Monetary and Credit Policy for the
year 2001-2002 enclosed to the Governor�s letter No. MPD / BC / 206/ 07.01.279
/2000-01 dated April 19, 2001relating to export credit in foreign currency.
2.
With the ceiling rate on FCNR (B) deposits being lowered to LIBOR/ SWAP
rates from LIBOR/ SWAP rates plus 50 basis points, it has been decided to revise
the ceiling rate on foreign currency loans for exports by banks to LIBOR plus
1.0 percentage point. Accordingly, banks may extend export credit in foreign
currency to exporters at interest rates not exceeding one percent over LIBOR
with immediate effect. The schedule of interest rates effective from 19 April
2001 is furnished in the Annexure.
3.
Similar changes may be effected in interest rates in cases where EURO
LIBOR/ EUROIBOR have been used as the benchmark.
4.
The revision in the interest rates would be applicable not only to fresh
advances but also to the existing advances for the remaining period.
5.
A copy of your internal instructions issued in this regard to your
branches may be forwarded to us for our information and record at the earliest.
6.
Please acknowledge receipt.
ANNEXURE:
SCHEDULE OF INTEREST RATES ON EXPORT CREDIT IN FOREIGN CURRENCY OF SCHEDULED
COMMERCIAL BANKS EFFECTIVE FROM 19TH APRIL 2001
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1.
Pre-Shipment Credit
(a)
Upto 180 days
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Not
exceeding 1% over LIBOR/ EURO LIBOR/ EURIBOR
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(b)
Beyond 180 days and upto 360 days
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Rate
for initial period of 180 days prevailing at the time of extension plus
2.0 percentage points
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2.
Post- Shipment Credit
(a)
On demand bills for transit period (as specified by FEDAI)
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Not
exceeding 1% over LIBOR/ EURO LIBOR/ EURIBOR
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(b)
Usance Bills (for total period comprising usance period of export bills,
transit period as specified by FEDAI and grace period wherever applicable)
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i)
Upto 6 months from the date of shipment
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Not
exceeding 1% over LIBOR/ EURO LIBOR/ EURIBOR
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ii)
Export bills (demand or usance) realised after due date but upto date of
crystalisation
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Rate
for 2 (b) above plus 2.0 percentage points
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3.
Export Credit not otherwise specified (ECNOS)
a)
Pre-shipment Credit
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Free
@
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b)
Post-shipment Credit
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Free
@
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