What changed
Exim Bank signed a Line of Credit agreement with Cambodia on December 8, 2007, effective January 17, 2008, for USD 35.20 million. The credit covers the Stung Tasal Development Project, water pump purchase, and a transmission line, with at least 85% of contract value sourced from India.
What it means for you
Indian exporters can now access this LOC for eligible exports to Cambodia, with financing terms extending up to 48 months for project exports and 72 months for other supplies. Banks must handle related LCs and remittances, ensuring no agency commission is paid from the LOC proceeds.
What you must do
- Inform exporter clients about this LOC and direct them to Exim Bank for full details.
- Ensure shipments under this credit are declared on GR/SDF forms per RBI instructions.
- Allow agency commission remittance only after full contract payment is realized, using exporter's own resources or EEFC balances.
- Verify that at least 85% of contract value is sourced from India for financed goods and services.
Who it affects
AD Category-I banks, Indian exporters to Cambodia, Exim Bank
When does the credit facility expire?
For project exports, the last date for LC opening and disbursement is 48 months from the scheduled completion date(s) of contract(s); for other supplies, it is 72 months from the execution date of the Credit Agreement (January 17, 2008), i.e., December 7, 2013.