Exim Bank's Government of India
supported Line of Credit of USD 500 million to Ecowas Bank for Investment and
Development
RBI/2018-19/42 August
30, 2018 All Category – I Authorised Dealer
Banks Madam/Sir Exim
Bank's Government of India supported Line of Credit of USD 500 million to
Ecowas Bank for Investment and Development Export-Import Bank of India (Exim
Bank) has entered into an agreement dated March 25, 2018 with Ecowas Bank for
Investment and Development for making available to the latter, a Government
of India supported Line of Credit (LoC) of USD 500 million (USD Five hundred
million only) for financing various development projects in the 15 member
countries of Ecowas Bank for Investment and Development in West African
region. Under the arrangement, financing of export of eligible goods and
services from India, as defined under the agreement, would be allowed subject
to their being 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, goods and 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 of goods and services may be procured by the seller for
the purpose of the eligible contract from outside India. 2. The Agreement under the LoC is
effective from July 27, 2018 and the terminal utilization period is 60 months
after the scheduled completion date of each project. 3. Shipments under the LoC shall
be declared in Export Declaration Form as per instructions issued by the
Reserve Bank from time to time. 4. No agency commission is payable
for export 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- I (AD Category- I) banks may allow such
remittance after realization of full eligible value of export subject to
compliance with the extant 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 from their website www.eximbankindia.in. 6. The directions contained in
this circular have been issued under section 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 (R
K Moolchandani) |
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