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It will be applicable to only cash exports.(ii) The exporter will have the following two options to avail of export finance:(iv) Banks are permitted to extend PCFC for exports to ACU countries.(v) The applicable benefit to the exporters will accrue only after the realisation of the export bills or when the resultant export bills are rediscounted ‘without recourse’ basis.(i) The foreign currency balances available with the bank in Exchange Earners Foreign Currency (EEFC) Accounts, Resident Foreign Currency Accounts (RFC) and Foreign Currency (Non-Resident) Accounts (Banks) Scheme could be utilised for financing the pre-shipment credit in foreign currency.(ii) Banks are also permitted to utilise the foreign currency balances available under Escrow Accounts and Exporters Foreign Currency Accounts for the purpose, subject to ensuring that the requirements of funds by the account holders for permissible transactions are met and the limit prescribed for maintaining maximum balance in the account under broad based facility is not exceeded.(iii) Foreign currency lines of credit(iv) In case, the exporters have arranged for the suppliers’ credit for procuring imported inputs, the PCFC facility may be extended by the banks only for the purpose of financing domestic inputs for exports.(ii) Packing credit in excess of F. Banks should also satisfy about the valid reasons as to why PCFC extended for shipment of a particular commodity cannot be liquidated in the normal method.
PRE-SHIPMENT EXPORT CREDIT1.1 Pre-shipment Credit in Foreign Currency (PCFC)1.1.1 Definition'Pre-shipment' means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment, on the basis of letter of credit opened in his favour or in favour of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods from India or any other evidence of an order for export from India having been placed on the exporter or some other person, unless lodgement of export orders or letter of credit with the bank has been waived.1.1.2 General With a view to making credit available to exporters at internationally competitive rates, authorised dealers have been permitted to extend Pre-shipment Credit in Foreign Currency (PCFC) to exporters for domestic and imported inputs of exported goods at LIBOR/EURO LIBOR/EURIBOR related rates of interest as detailed below.1.1.3 Scheme(i) The scheme is an additional window for providing pre-shipment credit to Indian exporters at internationally competitive rates of interest. While allowing substitution of contract in this way, banks should ensure that it is commercially necessary and unavoidable.
A Syndicated Loan is a loan arrangement where multiple banks or non-banking financial institutions approved for loan services adopting the same loan agreement on ground of homogenous conditions to a single borrower.
CCB London is an active participant in the syndicated loan market in Europe assisting clients who have links with China.
The risk-weight categories are: Cash, including domestic and foreign currency owned and held in all offices of a Federal savings association or in transit.
In case of non-utilisation of PCFC drawals for export purposes, the penal provisions stated above should be made applicable and the ‘Running Account’ facility should be withdrawn for the concerned exporter.(iii) Banks are required to take any prepayment by the exporter under PCFC scheme within their foreign exchange position and Aggregate Gap Limit (AGL) as indicated in paragraph 1.1.4 (iii) (c) above.A qualifying securities firm may rely on the rating of its parent consolidated company, if the parent consolidated company guarantees the claim. 1821(e)(8)), or a netting contract between or among financial institutions under sections 401-407 of the Federal Deposit Insurance Corporation Improvement Act of 1991 ( 12 U. That portion of assets collateralized by the current market value of securities issued by official multilateral lending institutions or regional development institutions in which the United States Government is a shareholder or contributing member.Can be liquidated, terminated or accelerated immediately in bankruptcy or similar proceeding, and the security or collateral agreement will not be stayed or avoided under applicable law of the relevant jurisdiction. 555 or 559), a qualified financial contract under section 11(e)(8) of the Federal Deposit Insurance Act ( 12 U. All claims on depository institutions incorporated in an OECD country, and all assets backed by the full faith and credit of depository institutions incorporated in an OECD country.With the extension of ‘Running Account’ facility, mismatches are likely to occur for a longer period involving cost to the banks.Banks may charge the exporters the funding cost, if any, involved in absorbing mismatches in respect of the prepayment beyond one month period.
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