April 10th, 2021
Adjust your preferences and receive a personalized story recommendation based on your interest. The document also states that lenders whose credit facilities are not denominated in Rube, but who wish to become parties to the agreement, need appropriate authorizations and authorizations from the relevant government authority, including the RBI. Or the lender could enter into any other agreement, including the refinancing of its loans with loans denominated in Indian rupees, on the basis of what is necessary for the effective implementation of a resolution plan. The new agreement replaces the ICA for the settlement of the most stressed assets of July 23, 2018 and “could be accepted by lenders on a case-by-case basis,” says a letter from the IBA attached to the revised ICA project. The government has taken a number of steps to help revive stalled projects. A project monitoring group has been set up as an institutional mechanism to address a wide range of problems, including the acceleration of approvals. As of 1.1.2019, more than 3,191 questions raised on the PMG portal concerning 725 expected investment projects of 29.88 aff. and 513 inter-ministerial meetings and 247 meetings with the Chief Secretary of States were held to resolve related issues and sharing. In addition, interdepartmental groups have been formed by the ministries of shipping, textiles, energy, telecommunications, renewable energy and SMEs to examine systemic issues affecting the viability and reimbursement capacity of sectors. On 12.2.2018, the Reserve Bank of India (RBI) issued a revised Framework. The RBI reported that, in its decision of 2.4.2019, the Supreme Court referred to the above circular as non-is, which necessitated the issuance of a revised circular for the prompt and effective resolution of stressed assets. The RBI also reported that, in this context, on 7.6.2019, the RBI published a “Prudential Framework for Resolution of Stressed Assets” for the rapid settlement of the most stressed assets in a transparent and temporal manner, giving lenders full latitude in the design and implementation of resolution plans, while providing additional provisions to delay the implementation of the resolution plan or the opening of an insolvency procedure and by making agreement between creditors.