India to waive outstanding dues on Cuba
The Cabinet Committee on Economic Affairs today gave its approval for waiver of dues of Indian companies on Cuba amounting to Rs.347 crore approx. CCEA also gave its approval for reimbursement (Principal + Interest) of the dues to individual companies amounting to Rs.128 crore approx.
It will facilitate resumption of credit facilities / insurance cover by EXIM Bank and Export Credit Guarantee Corporation of India (ECGC) to Cuba to enhance bilateral trade and investment.
Indian Companies, CIMMCO Birla Ltd, PEC Ltd. and Hiralal Printing Works had exported goods to Cuban companies. EXIM Bank of India extended credit facilities to Cuban buyers and CIMMCO Birla Ltd. While some amount has been received by the exporters, most of the dues remain unpaid by Cuban companies. The total principal dues amounting to Rs.135.41 crore and accumulated interest of Rs.211.78 crore as on 31.3.2007 are outstanding on Cuba. Most of the exports of CIMMCO Birla Ltd., PEC Ltd. and Hiralal Printing Works and credit by EXIM Bank were covered by ECGC insurance cover. Dues amounts were paid by ECGC, as per insurance policy.
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