Question

What is the maturity period of External Commercial Borrowings?

A 1 year Correct Answer Incorrect Answer
B 2 years Correct Answer Incorrect Answer
C 3 years Correct Answer Incorrect Answer
D 5 years Correct Answer Incorrect Answer
E No specific maturity period Correct Answer Incorrect Answer

Solution

Minimum Average Maturity Period (MAMP) is 3 years for all ECBs, irrespective of the amount of borrowing except for: •           ECB raised from foreign equity holder and utilised for specific purposes, the MAMP would be 5 years. •           ECB up to USD 50 million per financial year raised by manufacturing sector, which has been given a special dispensation, the MAMP would be 1 year.

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