• IMPORT FINANCE

    IMPORT FINANCE

    External Commercial Borrowings (ECB)

    As per revised guidelines of Reserve Bank of India, ECBs are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The parameters apply in totality and not on a standalone basis. The framework for raising loans through ECB (herein after referred to as the ECB Framework) comprises the following three tracks:

    Track I: Medium term foreign currency denominated ECB with minimum average maturity of 3/5 years.

    Track II: Long term foreign currency denominated ECB with minimum average maturity of 10 years.

    Track III: Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years.

     

    We shall study about this article further, in detail, in our next post.

     

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