What changed
Exim Bank signed a credit agreement with Ghana's government for a US$ 27 million line of credit, effective November 16, 2005. The facility supports Indian exports of goods and services for projects in agriculture, rural electrification, transportation, and communication under India's Foreign Trade Policy.
What it means for you
Banks can now facilitate export financing to Ghana under this LOC, with clear timelines for LC opening and disbursement. No agency commission is payable under this credit, but exporters may use their own resources or EEFC balances for commission in free foreign exchange after full contract value realisation.
What you must do
- Inform exporter constituents about this line of credit and its terms.
- Ensure shipments under this credit are declared on GR/SDF Forms as per extant instructions.
- Allow remittance of agency commission only after full contract value realisation and compliance with prevailing guidelines.
- Verify that Letters of Credit are opened by November 15, 2007, and disbursements meet the specified deadlines.
Who it affects
Authorised Dealer banks handling foreign exchange, Indian exporters to Ghana, Exim Bank
What is the total amount of the line of credit to Ghana?
The line of credit is for an aggregate amount of US$ 27 million, effective from November 16, 2005.
What sectors are covered under this credit?
The credit covers exports for projects in agriculture, rural electrification, transportation, and communication.
Can exporters pay agency commission under this line of credit?
No agency commission is payable under the credit. However, exporters may use their own resources or EEFC account balances for commission in free foreign exchange after full contract value realisation.