What changed
Exim Bank has signed a credit agreement with the Government of Chad for a USD 50 million line of credit, effective September 27, 2005. The credit covers four specific projects: a cotton yarn plant (USD 24.5 million), a steel billet plant and rolling mill (USD 11.5 million), an agricultural equipment assembly plant (USD 10 million), and a bicycle plant (USD 4 million). Terminal utilization periods: 48 months from the completion date for project exports and 72 months from the date of execution of the Agreement (August 29, 2011) for other supply contracts.
What it means for you
Banks must ensure that all shipments under this credit are declared on GR/SDF forms as per existing instructions. No agency commission is payable under this line of credit, but if needed, exporters can use their own resources or EEFC balances for commission in free foreign exchange after full contract value realization. ADs must inform exporter constituents about this facility.
What you must do
- Notify exporter customers about the USD 50 million line of credit to Chad and the four eligible projects.
- Ensure all shipments under this credit are declared on GR/SDF forms as per RBI instructions.
- Do not allow agency commission payments under this line of credit; if commission is required, ensure it is paid from exporter's own resources or EEFC account after full contract value realization.
- Refer exporters to Exim Bank's office or website for full details of the line of credit.
Who it affects
Authorised Dealer banks handling foreign exchange, Exporters dealing with Chad under this line of credit, Exim Bank
What is the total amount of the line of credit to Chad?
The line of credit is for an aggregate sum of USD 50 million, effective from September 27, 2005.
Which projects are covered under this line of credit?
Four projects: a cotton yarn plant (USD 24.5 million), a steel billet plant and rolling mill (USD 11.5 million), an agricultural equipment assembly plant (USD 10 million), and a bicycle plant (USD 4 million).
Can exporters pay agency commission under this line of credit?
No agency commission is payable under this line of credit. However, if required, exporters may use their own resources or EEFC balances for commission in free foreign exchange after full contract value realization.