CIR. NO. 17/2005-06-RB, DT. 02/12/2005

Exim Bank’s Line of Credit of US$ 27 Million to The Government of the Republic of Ghana

The Export-Import Bank of India (Exim Bank) has concluded an agreement with the Government of the Republic of Ghana making available to the latter a Line of Credit (LOC) upto an aggregate sum of USD 27 Million (US Dollar Twenty Seven Million only). The credit agreement has become effective on November 16, 2005. The credit is available for financing exports of goods and services to Ghana for projects in agriculture, rural electrification, transportation and communication and 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 date for opening of Letters of Credit is November 15, 2007 (24 months from effective date of Credit Agreement). The last date for disbursement is 48 months from the 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 (ADs) may allow such remittance after realisation of full payment of contract value subject to compliance of prevailing instructions on payment of agency commission.

5. ADs 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 Sections 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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