Originally Published: May 10, 2005
Source: Press Trust of India, India
India's Finance Ministry is not in favour of revising norms for External Commercial Borrowing (ECB) or hiking the limits beyond $500 million in near future but it will allow microfinance institutions to raise up to $5 million from overseas markets, Press Trust of India (PTI) reported. Similarly, guidelines for foreign currency convertible bonds (FCCBs) will not be revised, a senior Finance Ministry official told PTI.
"ECB guidelines are unlikely to be revised now. The only change that is likely is that the microfinance institutions will be allowed to raise up to $5 million in ECBs," he said. Some of the MFIs wanted to raise cheaper resources from abroad and thus reduce interest rates on loans to the poor. The government will soon come up with an announcement on this, the official said.
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