Aviation ministry pitches for AI move to rejig $2.3-bn loan

New Delhi: The civil aviation ministry has pushed the state-owned Air India’s case for restructuring of $2.3 billion long-term loan taken for aircraft acquisition. The proposed restructuring/refinancing would result in 3% reduction in interest rate.
Civil aviation secretary M Madhavan Nambiar has written to his counterpart in finance ministry to work out the formula for reworking the debt structure for the carrier. “The ministry has asked for an urgent decision on the issue,” official sources told FE.
The lenders to Air India have currently got dual guarantee—sovereign guarantee from the government of India and also the aircraft. The airline wants to give either of the two guarantee while purchasing new aircraft and keep the other guarantee for further asset creation.
“There is a provision of redeployment of $2.6 billion and we would like to utilise that,” the airline CMD Arvind Jadhav said.
27/10/10 Nirbhay Kumar/Indian Express

To Read the News in full at Source, Click the Headline

Categories: NACIL Oct 2010