MUMBAI, July 11 (Reuters) - The Reserve Bank of India on
Thursday extended its relaxation of the all-in-cost ceiling for
issuers of external commercial debt until September 30, thus
making it easier for banks and companies to raise overseas funds
for several more months.
The RBI had raised the all-in-cost ceiling for ECBs, or the
amount issuers are allowed to pay to raise the funds, in
November 2011 following the difficulties borrowers were facing
to raise funds in a turbulent global economy.
The relaxed all-in-cost ECB ceiling remains at 350 basis
points above 6-month LIBOR for three year to five year loans and
at 500 bps above LIBOR for loans of more than five years.
(For RBI circular double click: http://link.reuters.com/nyt59t)
(Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)