RBI Raised The Interest Rate Ceiling On Trade

The Reserve Bank on Wednesday raised the interest rate ceiling on trade credits used for funding imports with maturity up to one year, making it easier for authorised dealer banks to fund such transactions.

The banks, as per the RBI notification, can provide short-term credit for funding import transactions up to 75 basis points over six months LIBOR (London Interbank Offer Rate) as against the existing 50 basis points. However, the ceiling rate for funding long term imports transactions ranging between 1 and 3 years have been retained at 125 basis points over 6 months LIBOR. The short term credit is used for payment of arranger fee, upfront fee, management fee, handling and processing charges, out-of-pocket and legal expenses pertaining to imports. The RBI has permitted the authorised banks (ADs) to approve trade credits for imports in India up to $20 million per import transaction.

Haryana Waives Interest On Loans From Cooperative Bodies

CHANDIGARH: Haryana Chief Minister Bhupinder Singh Hooda on Friday announced waiving of interest on cooperative loans of small farmers, petty shopkeepers and artisans.

He said the government is also considering how to waive the remaining debt of these poor people.

The Chief Minister, who was addressing a public meeting at Narnaund in Hisar district, said the scheme to waive interest on cooperative loans was aimed at benefiting the poor to the tune of Rs 830 crore.

Referring to implementation of the scheme under which arrears of electricity bills to the tune of Rs 1600 crore were done away with by the government, he recalled that former Chief Minister Devi Lal had waived loan amounting to Rs 28 crore only.

Never in the history of independent India, he said, any state government had ever waived arrears of Rs 1,600 crore.

Hooda said the state budget for next financial year, to be presented in the assembly in March, would be of not less than Rs 6,600 crore.

WB Annual Plan Size Pegged At Rs 11,602cr

New Delhi: The annual Plan of West Bengal for 2008-09 has been estimated at Rs 11,602.38 crore, inclusive of additional Central Assistance of Rs 150 crore for projects of particular interest to the State. This was accorded upon at a meeting between the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, and the Chief Minister of West Bengal, Mr Buddhadeb Bhattacharjee, here. In his initial remarks, Mr Ahluwalia appreciated the State for improvements in its fiscal health, stating that both growth rate and inclusiveness of development programmes are showing healthy trend. Attention was also drawn to the need for improved States support in implementing national horticulture mission and skill development mission. Proper market mechanisms need to be put in place to decrease wastage in perishable goods. States should come forward in supplementing Centre''s effort in skills development.