Q&A on Asian Bus.

This is the place that our Editors will reply to your various questions about doing business in Asia.
Please utilize it as a solution to the issues you have doing your daily business across Asia.

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Can a company raise loans in foreign currency?

  • FAQ: INDIA
  • Date: 15.07.2010

Exchange control laws do not prohibit foreign currency loans. Foreign currency loans/credits may be raised in the forms of suppliers’/buyers’ credits, lines of credit, syndicated loans and instruments like floating rate notes, revolving underwriting facility, bonds, etc. Applicants are free to raise loans from any internationally recognised sources such as banks, export credit agencies, suppliers of equipment, foreign collaborators, foreign equity holders, international capital markets, etc.

For more details, see Asia Business Guide , [IND ¶55-014] Currency to be used for loans.