Indo-Seychelles Credit Agreement dated 24-2-2000 for U.S.$ 2 Million

Line of credit terms: majority export financing via letters of credit, importer must remit balance upfront and contracts need approval.

The line of credit permits imports of Indian capital goods (including contracted spare parts), consumer durables and consultancy services into Seychelles, excluding third country imports. Contracts require bilateral approval and routing to the Ministry of Finance. Disbursement is by letters of credit opened in Seychelles, with the importer to pay 10% of the f.o.b. value and the State Bank of India to reimburse 90% upon certification by the negotiating bank; LCs must include a prescribed reimbursement clause. Specific signing, L/C establishment and drawdown deadlines apply; agency commission is prohibited and non compliance is subject to FEMA penalties.