CIR. NO. 85/2003-04-RB, DT. 16/04/2004
- Document type
- Circular
- Dated
- Category
- A.P. (DIR Series) Circulars
Exim Bank's Lines of Credit of USD 10 Million each to Government of Zambia and to Bank Gospodarstwa Krajowego (National Economy Bank - BGK Bank), Poland
Exim Bank's Lines of Credit of USD 10 Million each to Government of Zambia and to Bank Gospodarstwa Krajowego (National Economy Bank - BGK Bank), Poland
2. The last dates for opening Letters of Credit and disbursements are March 17, 2006 and September 17, 2006, respectively in respect of the LOC extended to Government of Zambia. In respect of LOC extended to BGK Bank, Poland, the last dates for opening letters of credit and for disbursements are March 14, 2006 and September 14, 2006 respectively.
3. Shipments under the credit will have to be declared on GR/SDF Forms as per instructions issued from time to time.
4. While no agency commission shall be payable in respect of exports financed under the above lines of credit, Reserve Bank may consider, on merit, requests for payment of commission up to a maximum extent of 5 per cent per cent of the f.o.b./c&f/c.i.f. value in respect of goods exported and which require after sales service. In such cases, commission will have to be paid in Zambia and Poland only for the exports under the respective LOCs, by deduction from the invoice of the relevant shipment and the reimbursable amount by the Exim Bank to the negotiating bank will be 90 per cent of the f.o.b./c&f/c.i.f. value minus the commission paid. Approval for payment of commission should be obtained before the relevant shipment is effected. In other cases (i.e. exports not involving after sales service), requiring payment of agency commission, the exporter will have to use his own resources for such payments.
5. Authorised Dealers may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Lines of Credit from Exim Bank's office or its website.
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).
Yours faithfully,
Grace Koshie
Chief General Manager