Ifci May Get Another Govt Guarantee

As interim relief, the government is considering a proposal to extend an additional guarantee to IFCI Ltd, which has approached the Centre for a Rs 1,000-crore cover to help it to raise funds for meeting repayment obligations due in October and November.

Of the fresh demand, about Rs 500 crore will be needed to exercise a put option on a $100 million floating rate note (FRN) due next month and another Rs 400-500 crore to meet domestic currency liabilities in October and November. IFCI has already initiated talks with the finance ministry.

Finance ministry officials said they had not received a written request.