(a) whether the Government have decided to buy back various high cost debt bonds
issued by them; and
(b) if so, the details thereof aiongwith the reasons therefor?
(a) whether the Government have decided to buy back various high cost debt bonds
issued by them; and
(b) if so, the details thereof aiongwith the reasons therefor?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBA ADSUL):
(a) and (b) Government proposes to offer a buyback of high coupon relatively illiquid
Government securities on voluntary basis. The participating banks will be allowed
additional deduction for income tax purposes on premium received to the extent that
such premium is used for provisioning for their non-performing assets. The scheme will
enable the Central Government to reduce interest burden on the outstanding market loans
and banks to make additional provision for non-performing assets, thereby improving
their balance sheets.