EXIM Bank extends LOC to Government of Syria
Exim Bank entered into an agreement (dated June 5, 2008) with the Government of the Syrian Arab Republic to provide for a Line of Credit (LOC) of USD 25 million (USD twenty five million ) for financing export of goods from India with effect from October 27, 2008. This would be extended to those goods which are eligible for export under the Foreign Trade Policy and whose purchase may be agreed to be financed by the Exim Bank. Out of the total Credit an amount up to 90% of the FOB /CFR/CIF contract price of the Eligible Contract may be made available to the Government of the Syrian Arab Republic . 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 (June 4, 2014) 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. Further, no agency commission is payable under this 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.
A.P. (DIR Series) CIRCULAR NO. 36/RBI., Dated: November 14, 2008