GUIDELINES ON POLICIES AND PROCEDURES FOR EXTERNAL COMMERCIAL BORROWINGS FOR 1997-98

ON-LENDINGS BY DFIs AND OTHER FINANCIAL INTERMEDIARIES

While DFIs are required to adhere to the average maturity criteria prescribed, namely, minimum of five years for loans more than USD 15 million equivalent and minimum three years for loans less than or equal to USD 15 million equivalent for their borrowing, they are permitted to on-lend at deferent maturities. They may also on-lend for project related Rupee expenditure. However, other financial intermediaries are required to adhere to the general ECB guidelines on maturity as well as end-use in their on-lending programmes.

All financial intermediaries, including DFIs, are required to on-lend their external commercial borrowings within 12 months of drawdown.

Guidelines on Policies and Procedures for External Commercial Borrowings 1997-98

[ECB Policy] [Average Maturities for ECB] [USD 3 Million Scheme][Exporters/Foreign Exchange Earners][ Infrastructure Projects][Long-Term Borrowers][On Lendings by DFIs and Other Financial Intermediaries][End-Use Requirements][Proceeds from Bonds , FRNs & Syndicated Loan][ECB Entitlement for New Projects][Interest rate for Project Financing][Other Term and Conditions][Security][Exemption from Withholdings Tax][Approval under FERA][Short-Term Loan from RBI][Validity of Approval][Pre-Payment of ECB][Refinancing the Existing Foreign Currency Loan][Liability Management][Procedure for Seeking ecb Approval][Review][Hedging of Loan Exposures][Format for providing information to Department of Economic Affairs, Ministry of Finance, for seeking ECB Approval]