India cbank extends relaxation on ECB cost ceiling till Sept 30

Last Updated: Thu, Jul 11, 2013 14:40 hrs

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: (Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)

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