CNBC-TV18 reported that the India government will refinance infrastructure projects by using India Infrastructure Finance Company as the apex body for distribution of loans.

The method that the Finance Ministry as well as the Prime Minister's office is considering is to not burden the fiscal, not disobey the Fiscal Responsibility and Budget Management or FRBM targets, as also to not touch the FX reserves at a time when they are needed anyways to defend the rupee. So those two vulnerabilities, on which the country could get downgraded are going to be avoided. India Infrastructure Finance Company Limited or IIFCL would be used as a nodal agency which will take external commercial borrowing or ECBs.

Full Story...

Posted by boyang at November 26, 2008 7:44 AM