in the private industrial sector arranging foreign credit in the form of loan,
suppliers' credit, PAYE scheme etc. falling within the following guide-lines
are not required to obtain prior approval from BOI for contraction such credit:
- The effective rate of interest
should not exceed LIBOR + 4% (effective interest is the sum of the stated
annual rate of interest and the annualized fees such as commitment fee,
syndication fee, front-end fee, project appraisal fee etc) .
- The down payment, if any, in case of suppliers' credit
should not exceed 10% of the credit amount.
- Repayment period should not be less than 7 years.
A copy of the foreign loan agreement
signed by both parties should be submitted to BOI for registration.