New Delhi: After much dilly-dallying, the finance ministry has finally provided a sovereign guarantee to the bond issue of National Aviation Company (Nacil), which flies under the Air India brand. However, the government has granted a conditional cover, which bankers say will be of little help.
The guarantee was given after the deadline for the bond issue was extended. But what came as a surprise were the strings attached with it, which means that the guarantee to make good the liability will only be valid if the airline meets the specified parameters.
Finance secretary R S Gujral confirmed that a conditional cover had been given but the exact milestones could not be ascertained.
24/09/12 Sidhartha/Times of India
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The guarantee was given after the deadline for the bond issue was extended. But what came as a surprise were the strings attached with it, which means that the guarantee to make good the liability will only be valid if the airline meets the specified parameters.
Finance secretary R S Gujral confirmed that a conditional cover had been given but the exact milestones could not be ascertained.
24/09/12 Sidhartha/Times of India
