EXIM BANK’S LINE OF CREDIT FOR USD 10
MILLION TO BANK TURANALEM, KAZAKHSTAN
A.P. (DIR Series)(2003-04) Circular No. 84, dated 16-4-2004
The
Export-Import Bank of India (Exim Bank) has concluded an agreement with Bank
TuranAlem, Kazakhstan on February 27, 2004 making available to the latter a
Line of Credit (LOC) upto an aggregate sum of USD 10 Million (U.S. Dollar ten
million only). The Credit Agreement has become effective from March 24, 2004
and is available for financing export of equipment, goods and services and any
other items eligible for being exported under the ‘Exim Policy’ of Government
of India that may be agreed upon between Exim Bank and Bank TuranAlem to buyers
in Kazakhstan.
2. The last
dates for opening Letters of Credit and disbursement of credit are March 23,
2006 and September 23, 2006 respectively.
3. Shipments
under the credit will have to be declared on GR/SDF Forms as per instructions
issued from time to time.
4. While no
agency commission shall be payable in respect of exports financed under the
above line of credit, Reserve Bank may consider, on merit, requests for payment
of commission upto a maximum extent of 5 per cent of the f.o.b./c&f/c.i.f.
value in respect of goods exported and which require after sales service. In
such cases, commission will have to be paid in Kazakhstan only by deduction
from the invoice of the relevant shipment and the reimbursable amount by the
Exim Bank to the negotiating bank will be 90 per cent of the
f.o.b/c&f/c.i.f. value minus commission paid. Approval for the
payment of commission should be obtained before the relevant shipment is
effected. In other cases (i.e. exports not involving after sales
service), requiring payment of agency commission, the exporter 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
constituents and advise them to obtain full details of the Line of Credit 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).