Within 12 months of a Rs 400-crore bailout for the beleaguered IFCI, the government is set to provide it with a guarantee of Rs 1,500 crore ($300 million) on its borrowings.
According to senior finance ministry officials, IFCI will be able to borrow Rs 1,500 crore backed by the government guarantee to avert a default on foreign currency obligations over the next few months because banks and institutions are wary of extending further loans or rolling over their existing loans.
Officials told Business Standard that the bailout would come in the next few weeks as part of the supplementary demand for grants to be tabled in Parliament by finance minister Jaswant Singh.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app