RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI - 400 001
RBI/ 2004/ 141
A.P. (DIR Series) Circular No.83
April 12 , 2004
To
All Authorised Dealers in Foreign Exchange
Madam/Sirs,
Exim Bank's Letter of Credit
Refinancing Facility of USD 20 Million to Bank Markazi Jomhouri Islami Iran
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with Bank Markazi Jomhouri Islami Iran
(the Central Bank of the Islamic Republic of Iran) on February 28, 2004 making
available to the latter, a refinancing facility of USD 20 Million (U.S.Dollar
twenty million only). The Credit Agreement has become effective from February
28, 2004 and is available for financing export from India to Iran for a period
of 24 months i.e. upto February 27, 2006.
2. While Bank Markazi has designated
Bank Mellat, Bank Melli, Bank Sepah, Bank Saderat, Bank Tejarat and Bank of
Industry & Mine as Issuing Banks for the above credit, Exim Bank has designated
Bank of Maharashtra, Union Bank of India and UTI Bank as advising/negotiating
banks from the Indian side.
3. Shipments under the credit
will have to be declared on GR/SDF Forms as per extant instructions.
4. No agency commission shall
be payable in respect of exports financed under the above line of credit. Hence,
if the exporter is required to pay agency commission, he will have to use his
own resources for such payments.
5. Authorised Dealers may bring
the contents of this circular to the notice of their exporter constituents and
advise them to obtain full details of the refinancing facility from Exim Bank's
Office or its web-site.
6. The directions contained
in this circular have been issued under Sections 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
(Grace Koshie)
Chief General Manager