Please refer to Para 2 (i) of SMEFD Circular No.11 dated June 26, 2009 in terms of which it was advised that 50% refinancing is eligible against LCs established before the announcement of the LTFF Scheme and retired after June 30, 2007 with the condition that such LCs have not been retired through own sources of the sponsors of the export oriented industries

2. With a view to further facilitate the export oriented industries, above condition has been waived and now banks/DFIs can also avail refinance under LTFF Scheme, to the extent of 50% of the value of LCs of above referred period only, even though these LCs have been retired through own sources / short–term bank loans. Further, sponsors will also be entitled to finance remaining 50% of such LCs through their own sources or through normal loans of banks/DFIs as per the terms & conditions of financing banks/DFIs agreed with their borrowers.

3. This relaxation has been allowed against LCs established during the period referred in Para-1 only and this will not be applicable on LCs established on or after announcement of the LTFF Scheme

4. The above relaxation shall remain valid only up to December 31, 2009. Any case received after December 31, 2009 shall not be considered under LTFF Scheme

All other instructions, on the subject, shall remain same.

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