All the central bodies have started withdrawing the stimulus packages. On one hand where the increase of excise duties and service taxes are expected in the coming budget, there is bad news for small time exporters too. The headroom for raising foreign currency loans had been increase.

The cap had been raised to Libor plus 350 basis points from Libor plus 100 basis points by the RBI in February 2009. The maximum rates have now been lowered to Libor plus 200 basis points.

Most firms though would be unaffected by this decision the small exporters will find it tough to raise the comparatively-inexpensive dollar loans. One reason that the RBI has made this move could be the fact that it had to exit the accommodatory stance. Another reason could be that the local banks are awash with the rupee liquidity for which they are not finding takers.

In order to compensate the RBI for charging a lower interest rate the exporters have been prohibited from paying the fees of bank.