External Commercial Borrowings (ECB) – Policy – RBI Circular No.19 dt. 9.12.2009
Dec. 10, 2009
Members of the Council
Sub : External Commercial Borrowings (ECB) – Policy – RBI Circular
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.
Ali Ahmed Khan
COUNCIL FOR LEATHER EXPORTS.