0
Mobile & Wireless

India central bank relaxes foreign borrowing for telecoms

Tuesday 27 November 2012 | 15:41 CET | News
The Reserve Bank of India (RBI) has relaxed its borrowing rules to allow operators to raise long-term funds from overseas to refinance domestic loans taken out to pay for 2G spectrum, reports PTI. The RBI said it relaxed the external commercial borrowing (ECB) rules due to "large outlay of funds required to be paid directly" to the government within a limited period of time. The central bank further said that the bidders in the 2G auction will be allowed to avail of ECB under the automatic route from their ultimate parent company without any maximum ECB liability-equity ratio. This applies only if the lender holds a minimum paid-up equity of 25 percent in the borrower company, either directly or indirectly. Furthermore, the bidders can avail of short-term foreign currency loans as bridge finance under the automatic route for making upfront payments for the spectrum and replace the same with a long-term ECB under the automatic route.

Categories: Mobile & Wireless
Countries: India
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.






69% of Telfort triple play packages are bought online
Netherlands  |  2014 Q2

Calendar   /   Industry Events

23 Oct Telenet Q3 2014
23 Oct Tele2 Q3 2014
23 Oct Rogers Communications Q3 2014
23 Oct Telekom Austria Q3 2014
23 Oct America Movil Q3 2014
23 Oct Orange Q3 2014
23 Oct Sonus Networks Q3 2014
23 Oct Sequans Communications Q2 2014
23 Oct Altera Q3 2014
23 Oct Nokia Q3 2014
23 Oct ADVA Optical Networking Q3 2014
23 Oct Synaptics Q3 2014
23 Oct Microsoft Q1 FY 2014/15
23 Oct Comcast Q3 2014
23 Oct Ingram Micro Q3 2014
23 Oct Amazon.com Q3 2014
23 Oct Netgear Q3 2014
23 Oct ShoreTel Q1 FY 2014/15
23 Oct 2nd Enterprise Mobility China Summit 2014
24 Oct DNA Q3 2014
24 Oct Belgacom Q3 2014
27 Oct Ooredoo Q3 2014
27 Oct PMC-Sierra Q3 2014
27 Oct Twitter Q3 2014
27 Oct Meru Networks Q3 2014
27 Oct Net Insight Q3 2014
27 Oct Telecoms Social Network Summit
28 Oct Internap Q3 2014
28 Oct Extreme Networks fiscal Q1
28 Oct Synchronoss Q3 2014
::: More Calendar Items