External commercial borrowing (“ECB”) facility for resolution applicants under corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016
By INSOL INDIA EDITORIAL Posted On : February 20, 2019
The Reserve Bank of India (“RBI”), has on February 07, 2019, amended the External Commercial Borrowing (ECB) Policy – New ECB Framework issued by the RBI on January 16, 2019 (“ECB Policy”), to permit resolution applicants to raise ECBs, under the approval route, from recognised lenders, to be utilised for repayment of term loans availed by a corporate debtor. The RBI has, however, clarified that such ECBs cannot be availed by resolution applicants from branches/overseas subsidiaries of Indian banks.
Resolution applicants which are eligible to borrow ECBs under the ECB Policy, can forward their proposals to raise ECBs, through their authorised dealer banks, to the Foreign Exchange Department of the RBI for approval.