Mumbai: GMR had not purchased any political risk cover for the Male airport, insurance sources have confirmed. Axis Bank-led lenders to the GMR Male airport project are now seeking legal recourse and have sent a notice to the Maldivian government for breach of contract.
Indian lenders have an exposure of close to $350 million to the $500-million project. Since the project is currently at the implementation stage, the repayment has not yet started. The development will therefore not have any immediate impact on the bad loan portfolio of banks. The original loan was with a tenure of over ten years.
Lenders are also keeping the Indian government in the loop as this is a political risk event.
04/12/12 Mayur Shetty/Times of India
