The Reserve Bank of India (RBI) on October 20, 2022 has issued notification regarding Exim Bank’s Short-Term Line of Credit (STLoC) of EUR 100 million to the Banco Exterior de Cuba for purchase of rice from India.
The following has been stated namely: -
• Export-Import Bank of India (Exim Bank) has entered into an agreement with the Banco Exterior de Cuba- an agency nominated by the Government of Republic of Cuba for making available the Short Term Line of Credit (STLoC) of EUR 100 million (Euro One Hundred Million Only)
• This is for the purpose of the financing procurement of rice from India to the Republic of Cuba.
• Out of the total credit by Exim Bank under the agreement, goods and services of the value of at least 75 percent of the contract price shall be supplied by the seller from India, and the remaining 25 percent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.
• If required, the exporter may use resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer (AD) Category- I banks may allow such remittance after realization of the full eligible value of export subject to compliance with the extant instructions for payment of agency commission
• Complete details of the STLoC may be obtained from the Exim Bank’s office or from their website.
[Notification No. RBI/2022-2023/133]
