Exim Bank extends $21.72 million line of credit for exports to Ghana

Export-Import Bank of India (Exim Bank) has extended a line of credit of $21.72 million for financing export of eligible goods and services, including consultancy services, to the Republic of Ghana.

Exim Bank has extended the line of credit under an agreement with the government of the Republic of Ghana signed in May this year, the Reserve Bank of India said in a release today.

Indian exporters can avail of the credit for financing export of eligible goods and services, including consultancy services from India, for improved fish harvesting and fish processing project and waste management equipment as also management support project in Ghana.

To avail of the credit, at least 85 per cent of the goods and services, including consultancy services, of the contract price should be supplied by the seller from India, while the remaining 15 per cent of goods and services (other than consultancy services) may be procured by the seller from outside India for the purpose, RBI said.

The credit agreement is effective 3 September 2010 and the last date for opening of letters of credit and disbursement will be 48 months from the scheduled completion date of contract in the case of project exports and 72 months (5 May 2016) from the execution date of the credit agreement in the case of supply contracts.

Shipments under the LOC will have to be declared on GR/SDF forms as per instructions issued by the Reserve Bank from time to time.

No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilise balances in his Exchange Earners' Foreign Currency Account for payment of commission in free foreign exchange. Authorised dealer Category- l banks may allow such remittance on realisation of full contract value subject to compliance with the prevailing instructions for payment of agency commission, RBI said.