A.P. (DIR Series)(2003-04) Circular No. 83, dated 12-4-2004
Exim Bank’s Letter of Credit Refinancing
Facility of USD 20 Million to Bank Markazi Jomhouri Islami Iran
The
Export-Import Bank of India (Exim Bank) has concluded an agreement with Bank
Markazi Jomhouri Islami Iran (the Central Bank of the Islamic Republic of Iran)
on February 28, 2004 making available to the latter, a refinancing facility of
USD 20 Million (U.S.Dollar twenty million only). The Credit Agreement has
become effective from February 28, 2004 and is available for financing export
from India to Iran for a period of 24 months i.e. upto February 27,
2006.
2. While
Bank Markazi has designated Bank Mellat, Bank Melli, Bank Sepah, Bank Saderat,
Bank Tejarat and Bank of Industry & Mine as Issuing Banks for the above
credit, Exim Bank has designated Bank of Maharashtra, Union Bank of India and
UTI Bank as advising/negotiating banks from the Indian side.
3. Shipments
under the credit will have to be declared on GR/SDF Forms as per extant
instructions.
4. No
agency commission shall be payable in respect of exports financed under the
above line of credit. Hence, if the exporter is required to pay agency
commission, he will have to use his own resources for such payments.
5. Authorised
Dealers may bring the contents of this circular to the notice of their exporter
constituents and advise them to obtain full details of the refinancing facility
from Exim Bank’s Office or its website.
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).