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RBI/2005–06/ 271
A.P. (DIR Series) Circular No. 19
January 2, 2006
To,
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Exim Bank’s Line of Credit of US$ 27 Million
to The Government of the Republic of Mali
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with the Government of the Republic of
Mali making available to the latter a Line of Credit (LOC) upto an aggregate
sum of USD 27 Million (US Dollar Twenty-Seven Million only). The credit agreement
has become effective on December 5, 2005. The credit is available for financing
exports from India, under the Foreign Trade Policy of the Government of India,
of equipment, goods and services for rural electrification (USD 15 million)
and setting up of agro-machinery and tractor assembly plant (USD 12 million)
in Mali. Full details of the Line of Credit are available at the Exim Bank’s
office or its website (www.eximbankindia.com).
2. The terminal utilization period is 48
months from the scheduled completion date of contract in case of project exports
and 72 months from the date of execution of the Agreement i.e. August 07, 2011
in case of other supply contracts.
3. Shipments under the credit will have to
be declared on GR/SDF Forms as per instructions issued from time to time.
4. No agency commission is payable under
the above line of credit, however, if required the exporter may use his own
resources or utilize balances of his EEFC account for payment of commission
in free foreign exchange. Authorised Dealer (AD) 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 banks may bring the contents of this
circular to the notice of their exporter constituents.
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) and is without prejudice to permissions/approvals, if
any, required under any other law.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
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