To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim
Bank's Line of Credit (LOC) of USD 25 million to the Government of the Republic
of Guinea Bissau
Export-Import
Bank of India (Exim Bank) has concluded an agreement dated January 13, 2007 with
Government of the Republic of Guinea Bissau, making available to the latter,
a Line of Credit (LOC) of USD 25 million (USD Twenty five million only) for financing
projects at Guinea Bissau viz. i) US $ 10 million for an electricity project,
ii) US $ 5 million for the food processing / agricultural sector, and (iii) the
balance amount of US $ 10 million for project(s) proposed by the Government of
the Republic of Guinea Bissau and as may be agreed by Government of India / Exim
Bank, and whose purchase may be agreed to be financed by Exim Bank under this
Agreement to the extent of at least 85 per cent of the amount of the Credit and
which are eligible for export under the Foreign Trade Policy of the Government
of India.
2.The Credit Agreement
under the LOC is effective from March 15, 2007. Under the LOC, the terminal utilisation
period will expire at the end of 48 months from the scheduled completion date(s)
of contract(s) in case of project exports and January 12, 2013 (72 months from
date of execution of Credit Agreement i. e. January 13, 2007) in case of other
supply contracts.
3.Shipments under
the credit will have to be declared on GR / SDF Forms as per instructions issued
by Reserve Bank from time to time.
4.No
agency commission shall be payable in respect of exports financed under the above
line of credit. However, if required, the exporter may use his own resources or
utilise balances of his EEFC account for payment of commission in free foreign
exchange. Authorised Dealer Category - I (AD Category - I) banks may allow such
remittance after realisation of full payment of contract value subject to compliance
of prevailing instructions on 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 Exim Bank's office at Centre One, Floor 21, World Trade Centre
Complex, Cuffe Parade, Mumbai 400 005.
6.
The Directions contained in this circular have been issued under sections 10(4)
and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and
is without prejudice to permissions / approvals, if any, required under any other
law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge