No.CLE/ED/CIRCULAR/2009

Dec. 10, 2009

Members of the Council

Sub : External Commercial Borrowings (ECB) – Policy – RBI Circular

Dear Member

The Reserve Bank of India (RBI) has issued a Circular A.P. (DIR Series) Circular No.19 dated December 9,2009 making changes in respect of all in cost ceilings for the External Commercial Borrowings (ECB). This Circular states that it has been decided to with draw the existing relaxation in the all-in-cost ceilings under approval route for ECBs, wherein loan Agreements are to be signed on or after January 1, 2010. The revised all-in-cost ceilings will be as follows.

Average Maturity Period	All -in-cost Ceilings over six month Libor*
Three years and up to five years	300 basis points
More than five years	500 basis points
*for the respective currency of borrowing or applicable benchmark.

Members may kindly note the above.

With regards

Ali Ahmed Khan
Executive Director
COUNCIL FOR LEATHER EXPORTS.