IECD.No.5/04.02.01/98-99

August 6, 1998

The Chairmen/Chief Executives

of all Commercial Banks

Dear Sir,

Export Credit - Interest Rates

Please refer to circular IECD No. 41/04.02.01/97-98 dated April 29, 1998.

2. It has been decided that effective August 6, 1998, interest rates on pre-shipment and post-shipment rupee export credit should be reduced. The revised rates are given in the Annexure. The reduction in the interest rates would be up to 31st March 1999. As from 1st April 1999, the interest rates applicable prior to the issue of this circular will come into force automatically unless notified otherwise.

3. The benefit of the reduction in the interest rates as above, with effect from August 6, 1998 will be applicable not only to fresh advances but also to existing advances for the remaining period of credit.

4. The changes made in the interest rates on export credit as above have been incorporated in the Directive DBOD No. BC.77/13.07.01/98 dated August 6, 1998.

Yours faithfully

(A. Chandramouliswaran)

Chief General Manager