ANNOUNCEMENT 18 Dec 2012A new trade finance transaction was announced in December 2012.
NUMBER OF INTERVENTIONS
On 18 December 2012, the Government of India entered into an agreement to provide a loan of USD 10 million to the Government of the Republic of Seychelles for financing goods and services used for "specific", but undeclared projects funded by the Development Bank of Seychelles in Seychelles.
The credit is provided by the Export Import Bank of India (EXIM) and requires that at least 75% of the contract price for goods and services associated with the plant is sourced from India. The remaining 25% may be sourced from elsewhere. This measure disadvantages other suppliers that might compete for the contracts in question.
It provides further that, a relaxation of this Indian content requirement not exceeding 10 % may be considered on case-by-case basis for civil construction projects.
The credit agreement is effective from 10 June 2013. The Circular "A.P. (DIR Series) Circular No.4" was published for the same by the Reserve Bank of India on 8 July 2013.