Following are the ways of availing international financing:
Medium to Long term:
External Commercial Borrowings (ECB): It is a commercial loan in the form of bank loans, buyers’ credit, suppliers’ credit, and securitized instruments.
Foreign Currency Convertible Bonds (FCCBs):A bond issued by an Indian company expressed in foreign currency, and the principal and interest in respect of which is payable in foreign currency. It is subscribed by a non-resident in foreign currency and convertible into ordinary share of issuing company.
Foreign Currency Exchangeable Bond (FCEB): A bond issued by an Indian company expressed in foreign currency, and the principal and interest in respect of which is payable in foreign currency. It is subscribed by a non-resident in foreign currency and convertible into ordinary share of some other company.
Short term:
Trade credits (for importers): It includes suppliers’ credit or buyers’ credit for business import.
Export Credit: The exporter can avail pre-shipment and/ or post shipment credit either in rupees or foreign currency.
With increase in international trade (and even capital) there is a need to measure the value of one country’s currency (or region) with that of the others’.
Post-shipment finance is any loan or advance granted or any other credit provided by a bank to an exporter of goods / services from India from the date of extending credit after shipment of goods / rendering of services to the date of realisation of export proceeds as per the period of realization
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer (i.e. a bank) dealing in foreign exchange. It is a facility provided to foreign exchange earners, so that the account holders do not have to convert foreign exchange into Rupees and vice versa.
