30.1 Yugoslavia has so far extended two credits amounting to Rs. 596.42 million (net of cancellation and lapse) for financing the purchase of Capital Goods, equipments and ships etc. The first credit dated 21st January, 1960 was for an amount of Rupees 284.80 million and the same was entirely a Government to Government credit. The amount utilised upto 31st March, 1983 against this credit was to the tune of Rs.265.99 million. The second credit dt. 18.6.1986 was for Rs.600 million. However contracts could be concluded only to the value of Rs. 311.62 (Rs.1.02 Million against Government to Government Credit and Rs.310.60 Million under Suppliers Credit) upto the terminal date of contracting (i.e. 31.12.1970 and therefore the balance amount of Rs. 288.38 million was treated as lapsed). Thus, total net credit extended works out to Rs.577.61 million. The credits have been utilised for the purchase of ships, power equipments, crawler and tractors etc.
30..2 The repayment of principal and payment of interest are payable in Indian Rupees for utilisation by Yugoslavia authorities to purchase Indian Goods for export to Yugoslavia in accordance with Trade Agreement in force between two countries.
30..3 Yugoslavia has since offered a line of credit for US$ 50 million to IDBI on 3.4.1987 for financing import of certain equipments etc. from that country. The repayment is to be made in form of exports from India, within one year. However, if the repayment by way of export is not made within a period of 12 months the amount becomes payable in free foreign exchange. The credit line remains unutilised.
30.4 The brief terms and conditions of the Credits, utilisation and debt servicing thereof are shown in Annexure-I.