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Aug 28, 2015
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5/25 refinance deals to be reviewed at random
The Reserve Bank of India said it is undertaking periodic examination of randomly selected “5/25” deals to ensure they are facilitating genuine adjustment rather than becoming a backdoor means of postponing principal payments indefinitely.To deal with genuine problems of poor structuring (of long-term project financing), the RBI has allowed bankers to stretch repayment profiles for performing loans to infrastructure and the core sector (the “5/25” rule), provided the project has reached commercial take-off, has a genuinely long commercial life, and the net present value of loans is maintained.
Source -
http://www.thehindubusinessline.com
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