Export-Import Bank of India (Exim Bank) has
concluded an agreement with the Government of the Cooperative Republic of Guyana,
making available to the latter a Line of Credit (LOC) up to an aggregate sum
of USD 2.10 Million (US Dollar Two Million and One Hundred Thousand only) under
the credit agreement dated November 07, 2006 to finance setting up a traffic
signalling system by M/s. CMS Traffic System Ltd. (an Indian Company) in Georgetown,
Guyana. The credit is available for financing export of equipment, goods and
services from India, which are eligible for export under the Foreign Trade Policy
of the Government of India and whose purchase may be agreed to be financed by
Exim Bank. Out of the total credit, not less than 85 per cent shall be utilised
for financing purchase of 'Eligible Indian Goods' as defined in the Credit Agreement.
2. The credit agreement under the LOC is
effective from December 15, 2006. The terminal date for opening Letters of Credit
will be December 14, 2008 (24 months from the effective date) and the terminal
date for disbursements will be June 14, 2009 (30 months from the effective date).
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 of 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