Tight money trips FI's short-term lending plans
In a bid to avoid any asset-liability mismatch, financial institutions have suspended or curtailed their short-term lending programmes temporarily, following the RBI's recently tightened monetary policy. This move was prompted because of the cheaper access to funds enjoyed by banks, thus rendering short-term funding activities non-viable for the institutions.
Kannur Power promoters to route funds through 2 Mauritian firms
The promoters of the 513MW combined-cycle Kannur Power Project have floated two firms in Mauritius in a bid to route funds through them. The Rs 1,480-crore project is a joint venture between US energy major Enron International and KPP Nambiar & Associates. Enron International will route its 74% investment in the project through the two subsidiaries. Enron's Mauritius firm, Enron International MHC Kannur Ltd, will invest 63% of the equity while the rest will be invested by Enron International India Ltd.
Banks to revoke levy on loans to mini firms
Certain banks which had imposed a 1% levy on advances to the small-scale sector borrowers, have decided to revoke it from the financial year 1997-98, PHD Chamber of Commerce and Industry (PHDCCI) has said. The PHDCCI was intimated about this move by the Indian Banks Association (IBA). The PHDCCI had earlier requested IBA to take up the issue with banks in the interest of growth of SSI sector.
Working group plea on core sector advances spiked
The Reserve Bank of India (RBI) has turned down a proposal to exclude advances to infrastructure projects from the loan portfolio of banks for calculating 40% priority-sector lending. While rejecting the proposal, made by the IDBI-led inter-institutional working group, the RBI, however, assured the financial sector that it would look into their demand of excluding the exposure to infrastructure projects on a limited/non exposure basis from the computation of group exposure.
Snags may hinder Tata-Raytheon plan
The Tata-Raytheon project for construction of an international airport in Bangalore seems to be doomed even before take-off. The main cause of concern for the project's promoters arises from the differences between the aviation secretary, M.K. Kaw and the aviation minister, C M Ibrahim. As a result, the minister has overruled all the commitments made by Kaw on behalf of the government, thus putting the future of the project under a shadow.
Korea to renegotiate interest rates with IMF
The South Korean government has stated that it would hold talks with the International Monetary Fund (IMF) on lowering sky-high interest rates in the domestic money market. Maintaining benchmark interest rates at above 20% in the bond market was one of the conditions of the nearly $60 billion IMF bailout package agreed last month. The Korean administration is, however, seeking a lowering of the interest rates in light of the country's poor corporate scenario.
