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RBI relaxes overseas loan recast rules

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Reuters MUMBAI
Last Updated : Jan 23 2015 | 7:25 PM IST

MUMBAI (Reuters) - The Reserve Bank of India (RBI) relaxed rules for companies and banks to restructure and reschedule existing overseas borrowings by permitting an increase in the total cost of borrowing offshore.

Indian firms have found it difficult to restructure existing borrowings after facing a sharp slowdown in the economy.

The banking regulator also allowed changes in the drawdown and repayment schedules of such overseas borrowings, the Reserve Bank of India said in a release on Friday.

The easing of rules will however not be applicable for foreign currency convertible bonds, the RBI said.

For the full release click:

https://bsmedia.business-standard.combit.ly/15kyQKL

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(Reporting by Suvashree Dey Choudhury and Sumeet Chatterjee; Editing by Biju Dwarakanath)

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First Published: Jan 23 2015 | 7:13 PM IST

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