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External Commercial Borrowings (ECBs) � Prepayment
A.P.
(DIR Series) Circular No. 82 dated 1st March 2003
Attention
of Authorised Dealers is invited to A.P. (DIR Series) Circular No. 22 dated
September 17, 2002 in terms of which automatic route for prepayment of ECBs was
liberalised and made available to all category of borrowers without any
conditions upto USD 100 million if prepaid out of local resources/ market
purchases. There was, however, no limit if prepayment is made out of balances
held in Exchange Earners� Foreign Currency (EEFC) account or out of inflow of
foreign exchange through fresh equity.
2.
It has now been decided to remove the ceiling of USD 100 million for
prepayment out of local resources/market purchases. Authorised Dealers may
therefore, allow remittances towards prepayment of outstanding ECBs without any
limit.
3.
All other conditions stipulated in the circular referred to above shall
remain unchanged.
4.
The facility under the automatic route for prepayment of ECBs as
contained in this circular will be available till further notice, subject to
review.
5.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
6.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
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