Buyers Credit All-In-Cost Ceiling may move back to L+200bps from 01/04/2012

In its Circular dated 15/11/2011, RBI had increased the all-in-cost ceiling for Buyers Credit  from 6 Month L+ 200 bps to 6 Month L + 350 bps subject to condition that is only upto 31/03/2012 and after subject to review there after.

As of yesterday evening, there is no fresh circular from RBI on Trade Credit. If this situation remains, effective from 01/04/2012

  1. Maximum Cap will come down to 6 Month Libor + 200 bps
  2. Internationally price for < $100000 is already above 6 Month Libor + 200 bps. Thus, for SME it will get difficult to arrange funds.

RBI Circular on Trade Credit Dated 15/11/2012

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.