External Commercial Borrowings (ECB) and Trade Credits (TC) Policy – Changes due to LIBOR transition - FEMA - 19

..... Direction No.5 dated March 26, 2019, on “External Commercial Borrowings, Trade Credits and Structured Obligations”, prescribing the benchmark rates and the maximum spread over benchmark for calculating the all-in-cost for foreign currency (FCY) ECBs and TCs. 2. In view of the imminent discontinuance of LIBOR as a benchmark rate, it has been decided, in consultation with stakeholders, to make the following changes to the all-in-cost benchmark and ceiling for FCY ECBs/ TCs: i. Redefin .....

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External Commercial Borrowings (ECB) and Trade Credits (TC) Policy – Changes due to LIBOR transition - FEMA

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..... cost ceiling for such ECBs/ TCs has been revised upwards by 100 basis points to 550 bps and 350 bps, respectively, over the ARR. AD Category-I banks must ensure that any such revision in ceiling is only on account of transition from LIBOR to alternative benchmarks. 3. There is no change in the all-in-cost benchmark and ceiling for INR ECBs/ TCs. 4. All other provisions of the ECB/ TC policy remain unchanged. AD Category-I banks should bring the contents of this circular to the notice of their co .....

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External Commercial Borrowings (ECB) and Trade Credits (TC) Policy – Changes due to LIBOR transition - FEMA

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