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Date : Mar 30, 2012
Review of all-in-cost (AIC) on External Commercial Borrowings (ECB) and Trade Credit

On a review of the conditions in the global financial markets, it has been decided to continue with the enhanced all-in-cost ceiling for ECB and trade credit for a further period of six months as under:

(i) All-in-cost for ECB

Average Maturity Period

All-in-cost over 6 month LIBOR*

Three years and up to five years

350 bps

More than five years

500 bps

* for the respective currency of borrowing or applicable benchmark

(ii) All-in-cost for Trade Credit

Maturity Period

All-in-cost over 6 month LIBOR*

Up to one year

350 bps

More than one year and up to three years

The all-in-cost ceiling is applicable up to September 30, 2012, subject to review thereafter. Instructions have been issued vide A.P. (DIR Series) Circular Nos. 99 and 100 dated March 30, 2012.

Ajit Prasad
Assistant General Manager

Press Release : 2011-2012/1571

Related Notifications

Mar 30, 2012

External Commercial Borrowings (ECB) Policy – Review of all-in-cost ceiling

Mar 30, 2012


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