The
Head Offices of all Authorized
Dealers in Foreign Exchange,
Dear
Sirs,
SUBSTITUTION
OF CONTRACT/LCs AGAINST
PRESHIPMENT LOAN – UNDER FE-25
Attention of the Authorised Dealers is invited
to Circular letters No.05/EPP.16(326)NFCA-2002 and No. 07/EPP.16(326)NFCA-2002
dated August 23, 2002 and September 12, 2002 respectively,
regarding trade loans (for imports and exports only) under
FE-25 Scheme.
With
a view to further facilitate the exporters, the following
has since been decided:
(a)
Substitution of the Contracts/LCs may be allowed upto a
maximum period of six months from the date of disbursement
of the loan. It means that settlement/execution of the last
substituted Contract/LC should not extend beyond six months
from the date of disbursement of loan. Authorized Dealers
will have to ensure strict observance of these instructions.
(b)
In case, an exporter fails to fulfill the obligations under
the final Contract/LC or export order is cancelled, he may
approach through the Authorized Dealer to State Bank with
valid reasons/documentary evidence, with the request to
allow purchase of the outstanding loan amount, for settlement
purposes, from the interbank market.
