Govt okay with rejigging of crisis-hit IL&FS' long-term loans from PSBs

If Infrastructure Leasing & Financial Services (IL&FS) asks for it, the government will be okay with restructuring the long-term loans the company has taken from public sector banks (PSBs), said sources in the government on Wednesday. This is because half of the leveraged company’s assets are invisible.

An official aware of the matter said IL&FS would honour its short-term debts; only long-term debts would be restructured. 

“With half of IL&FS assets being invisible, the government is willing to allow a restructuring of loans. Long-term loans will be rolled over,” said the official, adding that about Rs200-billion non-current assets of the