NEW DELHI; India will receive 800 million dollars early in No member from the International Monetary Fund (IMF) as the first tranche of the 2.2 billion dollars loan, which will be firmed up during the four day visit of the IMF managing director Michel Camdessus from Wednesday.
During the visit India will also initiate the process for its con version into a seven billion dollar Joan from the concessional ex tended fund facility (EFF).
Camdessus would hold discussions with the Prime Minister P.V.Narasimha Rao and finance minister Manmohan Singh in the next two days.
As Camdessus himself and in dictated in Bangkok during the annual meeting of the fund-bank, that the IMF would concretize proposals for the 2.2 billion dollars to tide over India’s balance of payment crisis and subsequently the IMF board would approve the Joan tits meeting in Washington on Oct31.
The loans first installment of about 800 million dollars is expected to be released immediately in the first week of November, according to IMF sources.
The sources also indicated the discussions would begin on con version of the standby loan in to assistance from extended fund facility and paperwork would start Carly next year after the Indian govt carries out further fiscal and monetary reforms in the next budget.
The EFF assistance would be stretched over three year periods and India could expect to get two to three billion dollars annually.
Article extracted from this publication >> November 1, 1991
