14 july 2001

uti to be bailed out with rs 3,000 crore soft loan
mumbai: the unit trust of india has finalised modalities for raising rs 3,000 crore through a soft loan from a consortium of banks and financial institutions, including state bank of india, industrial development bank of india, life insurance corporation of india and bank of baroda.

the loan will be obtained at a sub-plr rate of interest, and is expected to be used to restructure the unit scheme 64.

following this development, the freeze on sale and repurchase of the us-64 by small investors redemption is to be lifted, although the limit of holdings of small investors is yet to be defined.
the decision for banks to lend to uti now awaits reserve bank of india approval, which is expected in ten days' time.

recession brings boom to rating agencies
mumbai: recessionary times for the rest of the industry is bringing a windfall to rating agencies, since companies are keen to retire high cost debts, opting for low cost options in the wake of prevailing low interest rates.