Financial Daily from THE HINDU group of publications
Sunday, Feb 01, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Home Page - Overseas Borrowings
Corporate - Overseas Borrowings


Easier ECB norms come into effect

Our Bureau

Mumbai , Jan. 31

THE Reserve Bank of India on Saturday notified that the external commercial borrowing (ECB) relaxations recently announced by the Union Government will come into effect from February 1.

The ECB limit under the automatic route requiring no prior approval from the RBI has been lifted to $500 million for loans having minimum maturity of five years, as long as the loans are for investment in industrial, infrastructure sector or for acquisition of shares under the Government's disinvestments programme of PSU shares. The previous limit for automatic route had been set at $50 million. It has also specified another approved category of loans up to $20 million with minimum average maturity of three years, said a release from RBI.

Under the approval route, among the categories of ECB covered are: financial institutions dealing exclusively with infrastructure or export finance; banks and FIs which had participated in the textile or steel sector restructuring package approved by the Government and based on assessment of prudential norms by RBI; and cases falling outside the purview of the automatic route.

The ceilings set on spreads have been revised with just two slabs fixed at 200 basis points and 350 basis points over six months LIBOR (London Inter Bank Offer Rate) for ECB of minimum average maturity of three to five years and more than five years, respectively.

More Stories on : Overseas Borrowings | Overseas Borrowings | Forex

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Easier ECB norms come into effect


New IUC regime from today
Corporate India plans big on capex
Tariff panel to study palmolein duty differential
Bajaj Auto Q3 net rises 35 pc to Rs 181 cr
Centurion Bank receives first phase of fund infusion
`SBI open to acquisitions'
`IFCI merger with PNB will be a win-win situation'



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line