A.P. (DIR Series) Circular No. 26
All Category - I Authorised Dealer Banks
Madam / Sir,
Bank's GoI supported Line of Credit of USD 0.17 million
to the Government of the Republic of Burundi
Export-Import Bank of India
(Exim Bank) has entered into an Agreement dated February 14, 2014 with the
Government of the Republic of Burundi for making available to the latter, a
Government of India supported Line of Credit (LOC) of USD 0.17 million (USD
One hundred seventy thousand) for the purpose of financing for preparation
of detailed project report for an Integrated Food Processing Complex in Burundi.
The 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, services of the value of at least 75% of the contract price
shall be supplied by the seller from India and the remaining 25% services
may be procured by the seller for the purpose of the eligible contract from
2. The credit agreement under
the LOC is effective from December 20, 2016. Under the LOC, the last date
for opening of letter of Credit and disbursement will be 48 months for
Project Export Contracts from the scheduled completion date(s) of
contract(s) and 72 months for supply contracts, from the date of execution
of the Agreement.
3. Shipments under the LOC will
have to be declared as per instructions issued by the Reserve Bank from
time to time.
4. 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.
5. 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 eximbankindia.in.
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) and are without
prejudice to permissions / approvals, if any, required under any other law.
Chief General Manager-in-Charge