Export-Import Bank of India (Exim Bank) has entered into an agreement dated Jun. 20, 2014 with the Government of the Republic of Togo for making available to the latter, a Line of Credit (LOC) of USD 30 million (USD Thirty million) for financing eligible goods, machinery, equipment and services including consultancy services (including Preparation of Detailed Project Report) from India for the purpose of financing rural electrification project to cover 150 localities in Togo.
The goods, machinery, equipment and services including consultancy services from India for exports under this agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75% of the contract price shall be supplied by the seller from India and the remaining 25% goods and services may be procured by the seller for the purpose of Eligible Contract from outside India.
The credit agreement under the LOC is effective from Aug. 21, 2014 and the date of execution of agreement is Jun. 20, 2014. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (June 19, 2020) 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 utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.
