Cabinet has approved a proposal to borrow US$ 1.5 billion from the issuances of development bonds this year.
Borrowings from domestic sources is estimated to be at 1,129 billion rupees and foreign sources is estimated to be Rs 450 billion.
The domestic borrowings will mainly consist of the issuance of treasury bonds and development bonds. In terms of foreign borrowings, cabinet approval has been granted on 13 December 2016 to raise funds through a foreign currency term financing facility amounting to 300 to 1,000 million US dollars. It is expected to raise 225 billion rupees (USD1.5bn) during 2017, through development bond issues within the total gross borrowing limit of 1,579 billion rupees approved by Parliament. These gross borrowings are to be utilised for the repayment of loans amounting to 800 billion rupees and 779 billion rupees to finance development projects. (LBO)
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