RBI permits interbank rate or alternative reference rate for External Commercial Borrowings amp; Trade Credits

In view of the imminent discontinuance of LIBOR as a benchmark rate, the RBI has decided, in consultation with stakeholders, to take into account differences in credit risk and term premia between LIBOR and the ARRs, the all-in-cost ceiling for new FCY ECBs and TCs has been increased by 50 bps to 500 bps and 300 bps, respectively, over the benchmark rates. There is no change in the all-in-cost benchmark and ceiling for INR ECBs/ TCs.In view of the imminent discontinuance of LIBOR as a benchmark rate, the RBI has decided, in consultation with stakeholders, to take into account differences in credit risk and term premia between LIBOR and the ARRs, the all-in-cost ceiling for new FCY ECBs and TCs has been increased by 50 bps to 500 bps and 300 bps, respectively, over the benchmark rates. There is no change in the all-in-cost benchmark and ceiling for INR ECBs/ TCs.taxmann.com Latest Statutory HappeningsRead More

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