India: No change in external commercial borrowings norms (333).

Shaji Vikraman

NEW DELHI, April 12

THE Union Finance Ministry has indicated that external commercial borrowings (ECBs), during the first half of this year also, will continue to have a minimum average maturity period of five years, as a matter of prudence.

In 1998, the Ministry reduced the average maturity norm for loans of over $ 20 millions from seven years to five years. For long-term paper also, it had reduced the average maturity period from 10 to eight years while reviewing the ECB policy for 1998-99.

The Government is now of the view that adherence to the prudent norms of an average maturity period of five years for ECBs and a cap on …