Loan: New Facilities for Export-Oriented Companies

Access to credit is easier to export-oriented companies. The Ministry of Finance has launched a new line of credit to lease dedicated to them. Novelty: they can borrow in foreign currencies at lower interest rates.

Minister Duval said that there is the Leasing Equipment Modernisation Scheme (LEMs) who is three years old. But it offered an interest rate of 7.25% and the loan can be done only Rs. However, with the new Investment Package , the company may borrow in dollars or euros. The amount allocated for this product is one billion rupees for the time, said Xavier Duval. And the interest rate will be 2.75% in the case of a loan in euro or 2.9% for the dollar. This, on a set, but fixed-rate period.

This is a substantial reduction in the cost of investment, said in essence the Minister Duval. And at the same time, it will generate employment. Citing the example of the coming into operation of a shopping center, Xavier Duval explained that it can create between 300 and 400 jobs, "while a factory can create the double" .

Another advantage is that foreign currency borrowings used to manage the Currency Risk . As previously, these companies had to settle for their transactions in rupees as their credit line was rupees. However, when there is a fluctuation in the currency, then they are in trouble.

Minister Xavier Duval also briefly discussed the PRB report released Monday, May 20 Citing wage increases of up to 51%, he stressed that it will boost the public sector and provide quality service and more efficient.