External Commercial Borrowings (ECBs)

Recently, several Non-Banking Financial Companies (NBFCs) in India are postponing plans to raise funds through External Commercial Borrowings (ECBs) due to rising hedging costs triggered by geopolitical tensions in the West Asia region.

  • ECBs are loans in India made by non-resident lenders in foreign currency to Indian borrowers.
  • They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).
  • ECBs include commercial bank loans, buyers' credit, suppliers' credit, securitized instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from the ....
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