What changed
Exim Bank signed a credit agreement on March 30, 2011, with Swaziland for two lines of credit of USD 10 million each, totaling USD 20 million, to finance an Information Technology Park. The credit became effective from July 6, 2011. Last dates for LC opening and disbursement are 48 months from the scheduled completion date(s) of contract(s) for project exports and 72 months (March 29, 2017) from the execution date of the Credit Agreement for supply contracts.
What it means for you
Indian exporters can now access this government-backed credit line for supplying goods and services to Swaziland's IT Park project. Banks must ensure at least 75% of contract value is sourced from India and handle GR/SDF form declarations. No agency commission is payable under these LOCs, but exporters can use own resources or EEFC balances for commission if needed.
What you must do
- Inform exporter customers about the LOC terms, including the 75% Indian content requirement.
- Advise exporters to contact Exim Bank for full details and documentation.
- Ensure GR/SDF forms are correctly declared for shipments under these LOCs.
- Process remittances for agency commission only after full contract value realization and compliance with existing rules.
Who it affects
AD Category-I banks, Indian exporters of goods and services, Exim Bank
What is the total value of the line of credit to Swaziland?
The total line of credit is USD 20 million, split into two equal tranches of USD 10 million each.
What is the minimum Indian content required under this LOC?
At least 75% of the contract price must be supplied from India, including goods and consultancy services.
Can exporters pay agency commission under this LOC?
No agency commission is payable under the LOC. However, exporters may use their own resources or EEFC balances to pay commission in free foreign exchange after full contract value realization.