Libor-Linked Rate Band Likely For Debt Funds

The finance ministry is expected to soon finalise a rate band for accessing debt funds from the international markets that will be benchmarked to Libor.

The ministry is currently holding discussions with several international rating agencies on the issue. Sources said this will necessitate ensuring a good rating for the country from the agencies, for which the ministry has already made a presentation.

The ministry feels that such a benchmark will give a clear idea to both the government and the corporate sector of the cost of accessing the international markets before firming up any plans.

The discussions are part of the ministry