RBI/2006-07/199
A.P. (DIR Series) Circular No.19
December 6, 2006
To
All Category - I Authorised Dealer Banks
Madam/Sir,
Exim Bank's Line of Credit of USD 20 million
to Myanma Foreign Trade Bank
The Export-Import Bank of India (Exim Bank)
has concluded an agreement dated August 17, 2006 with the Myanma Foreign Trade
Bank extending a Line of Credit for USD 20 Million for financing export of goods
and services from India, including consultancy services, which are eligible
for export under the existing Foreign Trade Policy of the Government of India
for renovation of the Thanlyin Refinery in Myanmar.
2. The credit agreement is effective from
October 23, 2006. The utilization period under the LOC will expire at the end
of 48 months from the scheduled completion date(s) of contract(s) in case of
project exports and August 16, 2012 (72 months from date of execution of Credit
Agreement) in case of 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 is payable 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 with the 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,
(M. Sebastian)
Chief General Manager