RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No. 106
April 12, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 150 million
to the Ecowas Bank for Investment and Development (EBID)
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated July
21, 2011 with the Ecowas Bank for Investment and Development (EBID), making
available to the latter, a Line of Credit (LOC) of USD 150 million (USD one
hundred and fifty million) for financing eligible goods, services and equipments
including project exports and consultancy services, to be exported from India to
the 15 member countries of EBID in West African region viz. Benin, Burkina Faso,
Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali,
Niger, Nigeria, Senegal, Sierra Leone and Togo. The equipment, 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 equipment, 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 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 March 12, 2012 and the
date of execution of Agreement is July 21, 2011. 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 (July 20, 2017) 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,
(Dr.Sujatha Elizabeth Prasad)
Chief General Manager-in-Charge
RBI/2011-12/495