Chapter 20

POLAND

 

20.1 Poland has so far extended three credits for a total value of Rs.366.35 Million (net of cancellation) and these were utilised for import of plant and machinery, equipment mainly for power generation, coal washeries and cellular concrete plants.

20.2 An important feature of the Polish credits was that repayment of principal and payment of interest were made in non-convertible Indian Rupees to facilitate purchase of Indian goods by the Polish authorities for export to Poland, in accordance with the Indo-Polish Trade Agreement in force from time to time.

20.3 The rupee payment arrangement with Poland has now ceased to exist with effect from 1.1.1991. From 1st January, 1991, trade with Poland is being conducted in freely convertible currency.

20.4 Brief terms and conditions of credits utilisation and debt service thereof are given in Annexure-I.