More measures on way to ease liquidity crunch: FM

The Government today said that the Reserve Bank of India (RBI) and the Finance Ministry have identified more measures to ease liquidity crunch. Briefing the media, Finance Minister P Chidambaram said that the measures are currently being worked out by the RBI and it will be announced later in the afternoon.

"The interbank lending still remain constraint. It is neccessary to overcome these constraints...it is important to ensure that credit flows to the borrowers," Chidambaram said.

The Finance Minister informed that there was a review of the current financial situation on Tuesday evening where the Prime Minister Manmohan Singh was also present.