IFCI will use grant to liquidate liabilities

 While most banks, institutions and insurance companies have agreed to the restructuring proposal, some like Uco Bank are unwilling to go ahead with the proposal.  Uco Bank Chairman V P Shetty told Business Standard that the matter would be resolved soon and discussions were under way.  Dues of institutional investors like provident funds and the Army Insurance, who have not agreed to the debt restructuring plan pushed by the finance ministry, will also be cleared. On the retail side, millionaire and gift bondholders have agreed to accept pre-payment.  The institution has also approached the Reserve Bank of India (RBI) to treat 50 per cent of the Rs 1,600 crore debt restructured by banks and financial institutions as Tier-I capital, which will push its capital adequacy ratio beyond the stipulated 9 per cent mark.  For almost three years now, IFCI has been unable to meet the RBI stipulation and has consistently received forbearance from it. At the end of March 2003, IFCI