What is External Commercial borrowing (ECB)
External Commercial borrowing
(ECB) is a term used to refer to commercial loans availed from non-resident
lenders with a minimum average maturity of 3 years in the form of bank loans,
buyers credit, suppliers credit, securitized instruments (e.g. floating rate
notes and fixed rate bonds).
A company is free to raise ECB
from any internationally recognized source such as banks, export credit
agencies, suppliers of equipment, foreign collaborators, foreign
equity-holders, international capital markets etc. However, offers from
unrecognized sources are not entertained.
No comments:
Post a Comment