RBI extends ECB deadline for fund raising by carriers
27 March 2014 11:26 PM GMT
The Reserve Bank of India on Wednesday extended the deadline for the aviation sector to raise funds through external commercial borrowings (ECBs) till March 2015, a move that would provide relief to the cash-crunched sector. ‘On a review, it has been decided that this scheme of raising ECB for working capital for the civil aviation sector will continue till March 31, 2015,’ the RBI said in a notification. Earlier, the scheme was valid till December 31, 2013.
The overall ECB ceiling for the civil aviation sector would be $1 billion and the maximum ECB that can be availed by an individual airline company will be $300 million. This limit can be utilised for working capital as well as refinancing of the outstanding working capital rupee loan availed of from the domestic banking system, it said.
The overall ECB ceiling for the civil aviation sector would be $1 billion and the maximum ECB that can be availed by an individual airline company will be $300 million. This limit can be utilised for working capital as well as refinancing of the outstanding working capital rupee loan availed of from the domestic banking system, it said.
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