Press Releases

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Date : Nov 15, 2011
Review of All-in-cost (AIC) on Trade Credit

On a review of developments in the global financial markets and the fact that domestic importers are experiencing difficulties in raising Trade Credit within the existing all-in-cost (AIC) ceiling, it has been decided to revise the AIC for Trade Credits as under:

Maturity Period

All-in-cost over 6 month LIBOR*

Existing

Revised

Upto one year

200 bps

350 bps

More than one year upto three years

* for the respective currency of credit or applicable benchmark

The all-in-cost ceilings include arranger fee, upfront fee, management fee, handling/ processing charges, out of pocket and legal expenses, if any.

The above amendment in Trade Credit will come into force immediately and the enhancement in all-in-cost ceiling is applicable upto March 31, 2012, subject to review thereafter.

Ajit Prasad
Assistant General Manager

Press Release : 2011-2012/763

Related Notification

Nov 15, 2011

Trade Credits for Imports into India – Review of all-in-cost ceiling


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