RBI CIRCULAR 

CIR. NO. 28/2005-06-(A.P. Dir Series), DT. 24/03/2006

Line of Credit (LOC) upto USD 33.5 million to the Government of Democratic Republic of Congo (DR Congo) by Exim Bank

The Export-Import Bank of India (Exim Bank) has concluded an agreement with the Government of Democratic Republic of Congo (DR Congo) making available to the latter a Line of Credit (LOC) upto an aggregate sum of USD 33.5 million (US Dollar Thirty three million five hundred thousand only). The credit agreement has become effective on February 20, 2006. The credit is available for financing export from India, of 228 Buses (US$ 12.5 mn), equipments for Miniere de Bakwanga (MIBA) (US$ 2 mn) and other equipment, goods and services including consultancy services for setting up a cement factory (US$13 mn) and rehabilitation of mine in Idsenge Manganse (US$ 6 mn), in Congo, which are eligible for export under the Foreign Trade Policy of the Government of India. Full details of the Line of Credit are available at the Exim Bank’s office or its website (www.eximbankindia.com)

2. The terminal utilization period is 48 months from scheduled completion date of contract in case of project exports and 72 months from the date of execution of the Agreement i.e. August 23, 2011 in case of other supply contracts.

3. Shipments under the credit will have to be declared on GR/SDF Forms as per instructions issued from time to time.

4. No agency commission is payable under the above line of credit. However, if required the exporter may use his own resources or utilize balances in his EEFC account for payment of commission in free foreign exchange. Authorised Dealer banks may allow such remittance after realisation of full payment of contract value subject to compliance of prevailing instructions on payment of agency commission.

5. Authorised Dealer banks may bring the contents of this circular to the notice of their exporter constituents.

6. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,
Vinay Baijal
Chief General Manager