Monday, March 15, 2010

INTEREST RATES ON EXPORT CREDIT IN FOREIGN CURRENCY REDUCED

It has been decided, in consultation with the Government of India, to reduce the ceiling rate on
export credit in foreign currency by banks to LIBOR plus 200 basis points from the present ceiling rate of LIBOR plus 350 basis points with immediate effect, subject to the express condition that the banks will not levy any other charges viz. service charge, management charge etc except for recovery towards out of pocket expenses incurred. Similar changes may be effected in interest rates in cases where EURO LIBOR/EURIBOR has been used as the benchmark.

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