- Me and Hrithik were not holidaying together: SussanneKareena shoots first ad post pregnancy newsFawad, Deepika turn muse for Manish MalhotraHockey legend Mohammed Shahid passes awayB'Day Special: Controversial Shweta Basu is Naseeruddin Shah's co star in Inter..Facebook,Twitter, Bigg Boss, Mumbai Blast, Tsunami turning 10 this year.When I was 13: Rahul Bose takes celebs down memory laneSocial media trolls don't affect me anymore: Anushka SharmaI'm one of the rare breed of directors: Nishikant KamatDeepika wishes 'kindest, generous' Vin Diesel on birthday
Dutee Chand is sprinting hard and she has her aim set -- the coveted gold medal at the Rio
Government helps Air India to pay debt Last Updated : 09 Oct 2012 11:11:34 PM IST File photo of Air India flight.
The government on Tuesday decided to guarantee Air India's non-convertible debentures (NCDs) worth Rs 7,400 crore, which will pave the way for the ailing carrier to pay off its short-term loans.
"The Ministry of Finance has approved the unconditional and irrevocable guarantee for Air India NCD bonds today for Rs 7,400 crore," an Air India spokesperson said.
Air India is burdened with a huge debt of over Rs 43,000 crore, which is a mix of long and short-term debt and working capital loans.
The airline will now credit rate the NCD bonds based on the guarantee issued by the government. The national carrier was banking heavily on NCDs sale to ease the interest cost on the expensive working capital loans.
"The proceeds of the NCD would be used to repay the short- term working capital facility availed by Air India from the 19 banks," the official said.
The debt-laden national carrier needed to issue the bonds as part of its financial restructuring plan but it had earlier hit a roadblock after the Finance Ministry refused to give "unconditional guarantee".
The NCD would have a tenure of 19 years and priced at a spread over the applicable government security. The government has capped the spread at 70 basis points, the official said.
" Air India would also be able to save on the interest cost by retiring this debt. The Banks would now have a reduced exposure to Air India after the said short-term loan is paid out by the national carrier," he said, adding the airline was targeting to achieve this within two to three weeks from the date of receipt of the sovereign guarantee.
Source: IANS, Other Agencies, Staff Reporters
For Latest Updates Please-
Join us on
Follow us on
Post Your Comment (0 posted):
Actress Kangana Ranaut looked every inch a Mughal empress as she walked for Manav Gangwani
- Why not: Kangana on getting married more than once
- 'Kabali' mints Rs 11.4 crore in north India in two days
- 'Mission Tiger' makers urge government to declare film tax-free
- 'Madaari' is a 'must watch', says Kejriwal
- Twinkle slams Naseeruddin for calling father 'poor actor'
- 'Madaari': A heartbreaking wake-up call
- Rajinikanth's 'Kabali' sets new box office record on opening day
- Shyam Kaushal choreographs action scene for 'Kaabil'
We humans are always cross the limits ― in events like skydiving, downhill skiing, car r
A US-based startup has launched a smart laptop shell that turns your Android smartphone i