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RBI/2005-06/273
A. P. (DIR Series) Circular No. 20
January 05, 2006
To,
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Exim Bank’s Line of Credit of US$26.8 Million
to the Government of Cote d’Ivoire
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with the Government of Cote d’Ivoire
making available to the latter a Line of Credit (LOC) upto an aggregate sum
of USD 26.8 Million (US Dollar Twenty Six million Eight Hundred Thousand only).
The credit agreement has become effective on December 5, 2005. The credit is
available for financing exports from India, under the Foreign Trade Policy of
the Government of India, of goods and services for renewal of urban transport
system in Abidjan with procurement of buses from India (US$ 21.8 million) and
setting up of agricultural projects in the field of vegetable oil extraction,
fruits and vegetables chips production, production of cocoa, coffee etc. (US$
5 million). 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 scheduled completion date of contract in case of project exports
and 60 months from the date of execution of the Agreement i.e. August 02, 2010
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 in his EEFC account for payment of commission
in free foreign exchange. The 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 Section 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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