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

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..... ion 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 Structured Obligations , pre .....

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..... ternative 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. iii. One Time .....

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..... 6. The directions contained in this circular have been issued under section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law. Yours faithfully Ajay Kumar Misra Chief General Manager-in-Charge - Circular - Trade Notice - Public Notice - Instructions - O .....

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