Friday, December 26, 2008

Finance Ministry Official Says No Scope For Further Easing Of Norms - Dec 26, 2008

A finance ministry official today, 26 December 2008, said there is no scope for relaxing overseas borrowing rules as of now. Planning Commission's deputy chairman's advisor Gajendra Haldea had said on, 19 December 2008, that the norms for external commercial borrowing (ECB) would be liberalied further in about a week's time.

The RBI had relaxed ECB norms in October 2008 to ease the pressure on funds with the sources dwindling as a fall out of global financial meltdown. Now, the companies are allowed to bring in funds up to US $500 million for rupee or foreign currency expenditure under the automatic route.

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