India, Japan sign bilateral swap deal

The BSA will be activated when an IMF-support programme already exists or is expected to be established in the near future.  Up to 20 per cent of the maximum amount of drawing could be disbursed without an IMF-support program, the Reserve Bank of India said in a statement.
The agreement was signed by RBI Governor YV Reddy and Bank of Japan Governor Masaaki Shirakawa in Basel and became effective as of June 29.

 

The arrangement aims at addressing short-term liquidity difficulties and supplementing the existing international financial arrangements, as one of the efforts in strengthening mutual cooperation between Japan and India, the release said.