Cement- Uses of Shortage

final instalment had been repaid, the exporter got tied up with IDBI.
Simultaneously with the amendment enabling IFCI to lend to public sector companies, IDBI has been permitted to extend buyers' credit The risk of recovery is now that of IDBI. The exporter will have a commercial agreement with the foreign buyer, while IDBI will enter into financial agreement. The technical change will give the Indian exporter "without recourse finance". That is to say, In the financial agreement the exporter will not be in the picture. However, the exporter will have to bear the risk of exchange fluctuations. Since IDBI's financial agreement will be in the foreign currency, a shortfall in rupee receipts would arise in the unlikely event of a rupee revaluation or an uncorrected foreign currency devaluation.