Dabhol Lenders Plan Forbearance Pact With Export Credit Agencies

Domestic lenders to the Dabhol project are looking at entering into separate forbearance agreements with all export credit agencies (ECAs) whose loans the Indian financial institutions and banks have guaranteed.

Such an agreement will mean that the ECAs will not invoke any guarantees within an agreed upon time-frame. That, in turn, will allow Indian banks and financial institutions (FIs) to take a smaller hit on their books.

Institutional sources told Business Standard they have already inked such a