External Commercial Borrowings (ECB) Policy - Take-out Finance

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....ies) Circular No. 5 dated August 1, 2005 and A.P (DIR Series) Circular No. 39 dated March 29, 2010 relating to the External Commercial Borrowings (ECB). 2. As per the extant norms, refinancing of domestic Rupee loans with ECB is not permitted. However, keeping in view the special funding needs of the infrastructure sector, it has been decided to review the ECB policy and put in place a scheme of ....

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....even years. (iii) The domestic bank financing the infrastructure project should comply with the extant prudential norms relating to take-out financing. (iv) The fee payable, if any, to the overseas lender until the take-out shall not exceed 100 bps per annum. (v) On take-out, the residual loan agreed to be taken- out by the overseas lender would be considered as ECB and the loan should be desi....