FIs ASK CASH-STRAPPED PROMOTERS TO PLEDGE HOLDINGS
Article Abstract:
Financial institutions (FIs) have evolved a 7-point formula for the promoters of projects seeking re-scheduling of their loans. Under the new guidelines, promoters will have to pledge their equity shares with FIs and should be prepared to lose control over them in case of major default. FIs will have powers to convert all additional loans into equity. To improve monitoring of cash, FIs have introduced trap cash system under which corporates will transfer their treasury functions to the lenders. Cash generated from these projects will be held in a trust and retention account which will be used to pay FIs' dues, maintenance of plants and provide for repayments. Promoters will allow their projects to be monitored by a firm of engineers appointed by FIs. The promoters are to seek FIs' permission before taking up any new projects. (gs)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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BANKAM TO TRIM WHOLESALE LENDING BUSINESS IN INDIA
Article Abstract:
Bank of America has decided to reduce its wholesale lending business in India by 30 percent. This is a part of its overall strategy to cut down operations in parts of Asia, especially India, Singapore and Taiwan. A 30 percent reduction in wholesale lending will mean that the bank may not redeploy a part of its current lending to Indian companies. The bank plans to concentrate more on global and multinational companies instead of domestic corporates. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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