Make export credit flexible & liberal: Fieo

New Delhi, Jan 25 | Updated: Jan 26 2005, 05:30am hrs
The Federation of Indian Export Organisations (Fieo) has asked the finance ministry to make the norms for export credit flexible and liberal.

Since the Reserve Bank of India (RBI) has already provided for pre-shipment credit in foreign currency (PCFC) to exporters at Libor 0.75%, Fieo has demanded that banks should provide such credit at the rate specified by RBI and absorb all costs of raising such funds.

According to Fieo president OP Garg, the RBI could lend or make available necessary foreign exchange free to bankers against loans granted as PCFC.

Stating that a number of charges paid by small and medium scale exporters were unnecessary, Mr Garg suggested that authorised dealers should be asked to desist from charging exporters on their submission of documents like export invoices and shipping bills which are only for information.