India will not undertake direct debt switch with RBI, top ministry official says
NEW DELHI - The Reserve Bank of India's holding of sovereign bonds due to mature next financial year will likely be treated at par with the market by the government rather than swapped for longer-dated debt, a top government official said.
The RBI holds around 1 trillion rupees of bonds maturing next financial year, as per market estimates, and the government was expected to swap these for longer-dated debt before the budget on Saturday, a practice undertaken in earlier years that typically means a smaller gross borrowing target. However, it did not do so this time and, as a result, the gross borrowing target for 2025-26 was raised to 14.82 trillion rupees from 14.01 trillion rupees in the current fiscal year. "In a normal course what the government is expected to do is, go to the market, issue those bonds ... give it to the bondholders. These bondholders can be public, institutions or RBI," India's Economic Affairs Secretary Ajay Seth said on Sunday. "The government would like to deal with that issue through a market-based operation rather than do a bilateral deal." The government aims to conduct a switch target of 2.50 trillion rupees in the next financial year, but there is no specific amount earmarked for buybacks. This financial year, the government bought back bonds worth around 882 billion rupees as it intended to keep as little cash as feasible, Seth said. The government's cash position at the start of 2025-26 would dictate whether there would be any buybacks in that period, he said.Trump to cut off funding for South Africa over expropriation act
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BRICS aims to 'build' global ties as Trump takes office: BrazilBrazil will seek to build relationships and not worsen an already tense global mood, while holding the rotating presidency of the BRICS bloc of developing economies, a top official told AFP.
Read more »
Trump's Mideast envoy to meet Netanyahu on Saturday, Israeli official saysTrump's Mideast envoy to meet Netanyahu on Saturday, Israeli official says
Read more »
Delay in Al-Qadir Trust verdict not linked to any deal, says Barrister GoharDelay in Al-Qadir Trust verdict not linked to any deal, says Barrister Gohar
Read more »
Who are invited, not invited, to world's top office bearer's inaugurationWho are invited, not invited, to world's top office bearer's inauguration
Read more »
Trump claims US 'split the atom', New Zealand says that's not trueTrump claims US 'split the atom', New Zealand says that's not true
Read more »
Rohit Sharma’s visit to Pakistan for ICC CT 2025 captains’ call uncertainThere is ongoing uncertainty regarding whether India’s captain, Rohit Sharma, will travel to Pakistan for the official captains' call ahead
Read more »