External Commercial Borrowings (ECB) and Trade Credits (TC) Policy – Changes due to LIBOR transition

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....ges due to LIBOR transition Please refer to paragraph 3 of the Governor's Statement on Developmental and Regulatory Policies dated December 08, 2021. In this connection, attention of Authorised Dealer Category-I (AD Category-I) banks is invited to paragraph 1.5, 2.1.vi. and 14.vi. of the of Master Direction No.5 dated March 26, 2019, on "External Commercial Borrowings, Trade Credits and Structu....

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....nterbank rate or alternative reference rate (ARR) of 6-month tenor, applicable to the currency of borrowing. ii. Change in all-in-cost ceiling for new ECBs/ TCs: To take into account differences in credit risk and term premia between LIBOR and the ARRs, the all-in-cost ceiling for new FCY ECBs and TCs has been increased by 50 bps to 500 bps and 300 bps, respectively, over the benchmark rates. ....