Export-Import Bank of India (Exim Bank) has opened a line of credit (LOC) of $15 million for financing exports to the Republic of Benin.
The Exim line of credit will be available for financing exports of eligible goods, machinery, equipment and services, including consultancy services, from India for the purpose.
More specifically, credit will be offered for purchases of railway equipment, agricultural equipment as also for conducting feasibility study for setting up a cyber city in Benin, an RBI release said.
The goods and services, including consultancy services, from India for exports under this agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement, it said.
To be eligible for export credit under this agreement, the goods and services of the value of at least 85 per cent of the contract price should be supplied by the seller from India, allowing for the remaining 15 per cent goods and services (other than consultancy services) to be procured by the seller for the purpose of eligible contract from outside India.
The credit agreement is effective from 16 February 2010 and date of execution of agreement is 19 October 2009. Under the line of credit, the last date for opening of letters of credit and disbursement will be 48 months from the scheduled completion date of contract in case of project exports and 72 months (18 October 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 the RBI from time to time.
No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilise balances of his Exchange Earners' Foreign Currency Account for payment of commission in free foreign exchange. Category- l authorised dealer banks are authorised to make such remittance after realisation of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.