External Commercial Borrowings (ECBs) occupy a very important position as a source of funds for Corporate. The intention of the Government is to maintain prudent limits for total external borrowings and to provide flexibility to Corporate in external borrowings and that is reflected in its guidelines. The main emphasis of guidelines is:

	to keep borrowing maturities long,
	to keep borrowing costs low,
	to encourage infrastructure, and
	to increase export sector financing.