The Presidents/ CEOs,
All Banks/DFIs,

Dear Sirs / Madam,

Scheme for Long Term Financing for the Export
Oriented Projects (LTF-EOP) – Modifications thereof

Please refer to Para 3 (i) of SMED Circular No. 15 dated July 14, 2006 on the captioned subject.

2) In this connection it is clarified that instructions regarding reduction in spread of banks/DFIs on financing provided by them under the LTF-EOP Scheme are also applicable on the loans sanctioned/disbursed prior to the issuance of above circular. Banks/DFIs are, therefore, advised to revise their rates of finance on the loans outstanding under LTF-EOP Scheme effective from July 14, 2006 so as to pass on the benefit of reduction in spread to the borrowers of export oriented projects.

3) All other instructions on the subject shall remain unchanged.

Please acknowledge receipt.