• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

NEW DELHI, Dec. 2

INSTITUTIONAL lenders including a clutch of public sector banks and financial institutions today agreed on a broad plan to restructure the liabilities of IFCI Ltd which includes reduction of interest rates and extending the maturity of a portion of the loans.

"The liability restructuring package has been finalised," the IFCI Chairman and Managing Director, Mr V.P. Singh, said after a meeting with the core group of bankers and shareholders to work out a solution on the IFCI's huge outstanding liabilities to the institutions. However, Mr Singh refused to divulge the details of the agreement.

The liabilities that came under discussion today amounted to roughly Rs 6,000 crore, out of a total liability restructuring package of Rs 12,500 crore sought by the institution, according to banking sources.

They said that IFCI had sought the lowering of interest on debt subscribed by banks to an average of around six per cent, while it also asked for 50 per cent of the non-SLR bonds to be converted into debentures with a low or at zero rate of interest.

Institutional stakeholders also worked out restructuring of interest rate on the Rs 1,000-crore assistance infused in IFCI by LIC, IDBI and SBI by way of deep discount bonds. It is understood that IFCI had sought the lowering of the rate to around eight per cent starting from the beginning of next fiscal from the earlier coupon rate of over 11 per cent. SBI and IDBI are understood to have agreed to the request.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Citibank Online `best'

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line