TaxTMI 
TaxTMI 
Is it possible to convert payables to ECB.IF so what is the procedure for the same.
conversion of payable to ECB
11 Mar 2011 
1 Reply 
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External commercial borrowing: converting payables needs bank sanction; automatic route applies within limits, otherwise approval required.
Conversion of trade payables into External Commercial Borrowing requires an application to the bank for sanction of the ECB proposal or conversion of an existing term loan. If the sanctioned amount is within prescribed limits the transaction proceeds under the Automatic Route; amounts beyond limits require regulatory approval. Interest rates depend on ECB maturity and repayment terms. ECB may be used for working capital (buyers' credit/suppliers' credit) or for project-related capital expenditure. (AI Summary)
Conversion of trade payables into External Commercial Borrowing requires an application to the bank for sanction of the ECB proposal or conversion of an existing term loan. If the sanctioned amount is within prescribed limits the transaction proceeds under the Automatic Route; amounts beyond limits require regulatory approval. Interest rates depend on ECB maturity and repayment terms. ECB may be used for working capital (buyers' credit/suppliers' credit) or for project-related capital expenditure. (AI Summary)