Exim Bank's Line of Credit of USD 20 million to the State of Eritrea
Exim Bank of India has concluded an agreement dated August 24, 2009 with the State of Eritrea making available to the latter, a Line of Credit (LOC) of USD 20 million for financing eligible goods and services, machinery and equipment including consultancy services from India for the purpose of financing multipurpose agricultural projects not exceeding USD 10 million [the proposed projects include artificial insemination development project, poultry waterer and feeder, establishment of milk collection centers , pressurized irrigation system (drip irrigation system), solar pumps project and soil survey and land evaluation equipment] and multipurpose educational projects not exceeding USD 10 million [which include purchase of teaching materials including books, laboratory/educational equipment, chemicals, computers etc].
The Credit Agreement under the LOC is effective from October 1, 2009 and date of execution of Agreement is August 24, 2009. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in case of project exports and 72 months (August 23, 2015) from the execution date of the Credit Agreement in case of supply contracts. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by Reserve Bank from time to time.
No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances of his Exchange Earners' Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.
A.P. (DIR Series) CIRCULAR NO 12/RBI., Dated: October 23, 2009