The government of India in consultation with Reserve Bank of India decided to transfer Rs280 billion from the MSS cash account to the normal cash account of the Government of India on May 2, 2009, a move that would ease the pressure on record market borrowings planned for 2009/10.
RBI aims to move a total of Rs330 billion from the market stabilisation scheme (MSS) in this year. However, the outstanding amount under the MSS account was Rs427.73 billion on May 2, the RBI said. Moreover, it has also bought back federal bonds in recent weeks to ensure adequate investor appetite for new auctions.
RBI in early March had given Rs120 billion to the government from the MSS account in order to meet a sudden surge of borrowings in the closing weeks of the 2008/09 fiscal year.
Moreover, the Central bank has taken a series of measures to ensure the government''s net borrowing plan of Rs3.09 trillion in the fiscal year would go through smoothly without disrupting markets and sending yields shooting up.
RBI aims to move a total of Rs330 billion from the market stabilisation scheme (MSS) in this year. However, the outstanding amount under the MSS account was Rs427.73 billion on May 2, the RBI said. Moreover, it has also bought back federal bonds in recent weeks to ensure adequate investor appetite for new auctions.
RBI in early March had given Rs120 billion to the government from the MSS account in order to meet a sudden surge of borrowings in the closing weeks of the 2008/09 fiscal year.
Moreover, the Central bank has taken a series of measures to ensure the government''s net borrowing plan of Rs3.09 trillion in the fiscal year would go through smoothly without disrupting markets and sending yields shooting up.
No comments:
Post a Comment