CIR. NO. 64/2008-09-RB, DT. 28/04/2009
- Document type
- Circular
- Dated
- Category
- A.P. (DIR Series) Circulars
External Commercial Borrowings (ECB) Policy - Liberalisation
External Commercial Borrowings (ECB) Policy - Liberalisation
2. As announced in Para 107 of the Annual Policy Statement 2009-10 and considering the continuing pressure on credit spreads in the international markets, it has been decided to extend the relaxation in allin-cost ceilings, under the approval route, until December 31, 2009. This relaxation will be reviewed in December 2009.
3. The modifications to the ECB guidelines shall come into force with immediate effect. All other aspects of ECB policy, such as USD 500 million limit per company per financial year under the Automatic Route, eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.
4. Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 are being issued separately.
5. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6.The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully
(Salim Gangadharan)
Chief General Manager in -Charge