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Govt In Talks With Banks To Buy Debt

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P Vaidyanathan Iyer BUSINESS STANDARD
Last Updated : Feb 26 2013 | 1:13 AM IST

The Centre plans to buy back costly domestic debt by bargaining with public sector banks that hold big chunks of government securities. The finance ministry has asked state-owned banks to study the impact of selling government securities back to the Centre.

Commercial banks own over 60 per cent of all the gilts in circulation. While the average cost of government borrowings in the current fiscal hovers around 7 per cent, nearly three-fourths of the Centre

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First Published: Feb 10 2003 | 12:00 AM IST

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