CIR. NO. 19/2006-07-RB, DT. 06/12/2006

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

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