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Monday, Nov 10, 2003

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Credit policy

This is with reference to "What the Credit Policy has ignored" (Business Line, November 7). The article is well-written and brief.

However, one feels that the following points could have been highlighted:

  • Many exporters are not getting easy rate finance in foreign currency. Generally, exporters whose billing is around $ 25,000 around are not given credit in foreign currency by bankers under PCFC terms.

  • While the Indian rupee is appreciating, exporters are not comfortable with the rupee lending rate.

  • If the RBI releases/earmarks around $25 billion to a few selected banks with specific instructions to lend to exporters under the PCFC finance, even if the central bank charges around 20 basis points, the bankers will be comfortable.

    Aspy Bharucha


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