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.
Please
acknowledge receipt.