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RBI/2005-06/334
A.P.(DIR Series) Circular No. 27
March 24, 2006
To,
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Exim Bank’s Line of Credit of US$ 60 Million
to the Government of Ghana
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with the Government of Ghana making available
to the latter a Line of Credit (LOC) upto an aggregate sum of USD 60 million
(US Dollar Sixty million only). The credit agreement has become effective on
February 27, 2006. The credit is available for financing exports from India,
of equipment, goods and services for rural electrification Project (USD 30 mn)
and construction of Presidential Office (USD 30 mn) in Ghana, which are eligible
for export under the Foreign Trade Policy of the Government of India. 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 under
the LOC 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
23, 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. Authorised Dealer 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. Authorised Dealer 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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