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External commercial borrowings (ecb)
What is the meaning of Minimum Average Maturity Period under ECB?
For Example: Minimum Average Maturity Period of ECB is 3 years.
Does it mean that the ECB should be paid off in Minimum 3 Years or does it mean that the payment will be scheduled after 3 years?
Replies (2)
3 years period is set for capital goods. That is the maximum allowed under ECB. In some cases rollover for further 2 years will be done with the specific permission of RBI.
3 years is the period until which the original term loan will be on hold. after the expiry of which it will be debited. Principal payment need not be made untill 3 years
3 years is the period until which the original term loan will be on hold. after the expiry of which it will be debited. Principal payment need not be made untill 3 years
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