Within 12 months of a Rs 400-crore bailout for the beleaguered IFCI, the government is set to provide it with a guarantee of Rs 1,500 crore ($300 million) on its borrowings.
According to senior finance ministry officials, IFCI will be able to borrow Rs 1,500 crore backed by the government guarantee to avert a default on foreign currency obligations over the next few months because banks and institutions are wary of extending further loans or rolling over their existing loans.
Officials told Business Standard that the bailout would come in the next few weeks as part of the supplementary demand for grants to be tabled in Parliament by finance minister Jaswant Singh.
