Debt switch may not happen this fiscal year: Khan

The planned switch would involve buying short-end debt and selling longer-dated bonds

The Reserve Bank of India deputy governor H R Khan said a planned Rs 50,000 crore rupee debt switch programme may not take place during the current fiscal year ending in March.

When asked by Reuters whether there was a possibility that the debt switch may not happen in the January-March quarter, Khan said: "Yes, but switch, when done, will be done in a non-disruptive manner."

Khan made the comment after Bloomberg TV had reported earlier on Thursday the central bank deputy governor as saying a debt switch may not happen this fiscal year.

The benchmark 10-year bond yield fell 3 basis points to 8.77% from levels before the Bloomberg TV report.

 

The planned debt switch would involve buying short-end debt and selling longer-dated bonds to spread out redemptions to future years.