Thursday, October 10, 2013

External Commercial Borrowings (ECB) Policy –Refinancing / Rescheduling of ECB

External Commercial Borrowings (ECB) Policy –
Refinancing / Rescheduling of ECB

As per the extant guidelines, the eligible borrowers desirous of refinancing an existing ECB can raise fresh ECB at a higher all-in-cost / reschedule an existing ECB at a higher all-in-cost under the approval route subject to the condition that the enhanced all-in-cost does not exceed the all-in-cost ceiling prescribed as per extant guidelines.

 On a review, it has been decided to discontinue this facility allowing eligible borrowers to raise ECB at a higher all-in-cost to refinance / reschedule an existing ECB with effect from October 01, 2013.

 The scheme of refinance of existing ECB by raising fresh ECB at lower all-in-cost, subject to the condition that the outstanding maturity of the original ECB is either maintained or extended, will continue as hitherto under the automatic route and approval route as the case may be.

Ref : A.P.  (DIR Series) Circular No. 59 dated September 30, 2013

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