EXIM Bank USD 10 mn credit line to Nicaragua will help Indian exporters
Updated: Feb 25, 2014 05:26:08pm
New Delhi, Feb 25 (KNN) Export Import Bank of India (EXIM Bank) will extend a line of credit of USD 10 million for financing import of goods from India by the Republic of Nicaragua. The goods which can be exported under this line of credit would include equipment for building two electric sub stations in Nicaragua.
“Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June 14, 2013 with the Government of the Republic of Nicaragua for making available to the latter, a Line of Credit (LOC) of USD 10 million (USD Ten million) for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of financing purchase of equipment from India for building two electric sub-stations in Nicaragua,” said an RBI notification yesterday.
The goods, machinery and equipment 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 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 may be procured by the seller for the purpose of eligible contract from outside India.
The Credit Agreement under the LOC is effective from January 31, 2014 and the date of execution of Agreement is June 14, 2013. 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 (June 13, 2019) 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, the notification said. (KNN Bureau)
“Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June 14, 2013 with the Government of the Republic of Nicaragua for making available to the latter, a Line of Credit (LOC) of USD 10 million (USD Ten million) for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of financing purchase of equipment from India for building two electric sub-stations in Nicaragua,” said an RBI notification yesterday.
The goods, machinery and equipment 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 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 may be procured by the seller for the purpose of eligible contract from outside India.
The Credit Agreement under the LOC is effective from January 31, 2014 and the date of execution of Agreement is June 14, 2013. 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 (June 13, 2019) 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, the notification said. (KNN Bureau)
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