Mumbai: Air India expects to get sovereign guarantees from the government next week to back loans worth Rs 2500 crore, a senior executive said Friday.
The state-run airline has tied up with 8-9 banks to raise the debt, to cover the shortfall in government funding to shore up its finances, the executive added.
Sovereign guarantees work as assurance for the lenders that in case the beneficiary of the loan defaults, the government will repay the money.
The government had set aside Rs 5000 crore as equity investment to Air India for the current financial year, according to the latest budget document.
18/10/13 Anirban Chowdhury/Economic Times
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The state-run airline has tied up with 8-9 banks to raise the debt, to cover the shortfall in government funding to shore up its finances, the executive added.
Sovereign guarantees work as assurance for the lenders that in case the beneficiary of the loan defaults, the government will repay the money.
The government had set aside Rs 5000 crore as equity investment to Air India for the current financial year, according to the latest budget document.
18/10/13 Anirban Chowdhury/Economic Times
