Exim Bank's credit of USD 125 mn to Sudan to help machinery exporters
Exim Bank's credit of USD 125 mn to Sudan to help machinery exportersMumbai, Jan 14 (KNN) Exim Bank's Line of Credit of USD 125 million to the Government of the Republic of Sudan is likely to help exporters of Indian machinery and equipment to that country.
“Export-Import Bank of India (Exim Bank) has entered into an Agreement dated July 24, 2013 with the Government of the Republic of Sudan, for making available to the latter, a Line of Credit (LOC) of USD 125 million (USD One Hundred and Twenty Five million) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing of Mashkour (earlier Elduem) Sugar Project in Sudan,” said an RBI notification yesterday.
The goods, services, machinery and equipment 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, RBI said, is effective from December 20, 2013 and the date of execution of Agreement is July 24, 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 (July 23, 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.
“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…” RBI said. (KNN/ES)