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Refinancing Existing Foreign Currency loan

Refinancing of outstanding amounts under existing loans by raising fresh loans at. lower costs is  permitted on a case-to-case basis. subject  o the condition that the outstanding maturity of the original loan is maintained. Rolling over of the ECB is not permitted. Similarly, a  corporate  borrowing overseas for financing its rippee related expenditure and swapping its ECHs with another corporate that requires   foreign currency funds is not permitted.

Usability Management

Corporates can undertake liability management for hedging the interest and or exchange rate risk  their underlying foreign currency  exposure. Prior approval of the DEA or the RBI has been  pensed with for concluding or winding up of the following transactions: (j) Interest   ate swaps, Currency swaps, (iii) Coupon swaps, (iv) Purchase of interest rate caps/Collars and (v) Forward  agreements

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