CAIIB · BFM · Chapter 6

Risks in Foreign Trade - Role of ECGC

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.

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Q

Working capital purposes?

A

except when ECB is raised from a foreign equity holder.

Q

General corporate purposes?

A

except from a foreign equity holder.

Q

Repayment of Rupee loans?

A

except from a foreign equity holder.

Q

General rule (including startups)?

A

3 years

Q

Manufacturing sector companies — ECB up to USD 150 million or equivalent per FY (enhanced from earlier USD 50 million w.e.f. 16 February 2026)?

A

1 year

Q

ECB from foreign equity holder used for working capital / general corporate purposes / repayment of Rupee loans raised domestically for non-capex?

A

5 years

Q

ECB used for working capital / general corporate purposes (other than from foreign equity holder)?

A

10 years

Q

ECB used for repayment of Rupee loans availed domestically for capex?

A

7 years

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