The Punjab Government will seek the help of NRIs to extricate farmers from the vicious cycle of debt. It intends floating interest-free masala bonds that are issued outside India but denominated in Indian rupees.
Unlike dollar bonds, where currency risk is that of the borrower, it is the investor who bears the risk in case of masala bonds.
The proposed Kisan Sahayata Bonds, each with a minimum value of Rs 1 lakh, will have a seven-year tenure. The money thus raised will be used to pay off institutional debt availed by 30.23 lakh farmers.
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Unlike dollar bonds, where currency risk is that of the borrower, it is the investor who bears the risk in case of masala bonds.
The proposed Kisan Sahayata Bonds, each with a minimum value of Rs 1 lakh, will have a seven-year tenure. The money thus raised will be used to pay off institutional debt availed by 30.23 lakh farmers.
Read the full story here
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