What changed
Exim Bank signed a credit agreement with Guyana on November 7, 2006, effective December 15, 2006, for a USD 2.10 million line of credit. The credit finances a traffic signalling system by an Indian company in Georgetown, with at least 85% of the amount reserved for eligible Indian goods. Letters of credit must be opened by December 14, 2008, and disbursements completed by June 14, 2009.
What it means for you
Indian banks handling export transactions under this credit must ensure shipments are declared on GR/SDF forms as per RBI instructions. No agency commission is payable under the credit, but banks may allow commission remittances from exporters' own resources or EEFC accounts after full contract value is realised. This supports Indian exports and strengthens bilateral trade ties.
What you must do
- Inform exporter customers about the line of credit and direct them to Exim Bank for full details.
- Ensure all shipments under this credit are declared on GR/SDF forms as per RBI guidelines.
- Process commission remittances only after full contract value realisation and compliance with prevailing rules.
- Verify that at least 85% of the credit is used for eligible Indian goods as defined in the credit agreement.
Who it affects
AD Category-I banks, Indian exporters dealing with Guyana, Exim Bank
What is the purpose of this line of credit?
It finances a traffic signalling system in Georgetown, Guyana, by an Indian company, M/s. CMS Traffic System Ltd.
What are the key deadlines for this credit?
Letters of credit must be opened by December 14, 2008, and disbursements completed by June 14, 2009.
Can agency commission be paid under this credit?
No agency commission is payable under the credit, but exporters may use their own resources or EEFC balances for commission in free foreign exchange after full contract value realisation.