Exim Bank's Line of Credit (LOC) of USD 100 million to Bank for Development and Foreign Economic Affairs (Vnesheconombank), Russia

Line of Credit for export financing enables India origin exports under conditional disclosure and agency commission rules.

Exim Bank's Line of Credit to Vnesheconombank, Russia finances exports eligible under India's Foreign Trade Policy. The Credit Agreement is effective from January 18, 2010, with the terminal date for opening Letters of Credit on January 17, 2013, and for disbursements on July 17, 2014. Shipments must be declared on GR/SDF forms. Agency commission is ordinarily not payable, but Reserve Bank may permit up to 5% for exports requiring after sales service; such commission must be deducted from the invoice and prior approval obtained from the relevant Foreign Exchange Department. Exporters may use own funds or EEFC balances for commissions where applicable, and AD Category I banks should inform exporters and comply with prevailing instructions. Directions issued under FEMA provisions remain subject to other statutory permissions.