Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

PMO Wants Finance Ministry to Restudy Overseas Sovereign Bond Plan: Report

This month, Finance Minister Nirmala Sitharaman said in her budget speech that India would look to issue overseas foreign currency sovereign bonds.

Reuters

Updated:July 26, 2019, 9:19 AM IST
facebookTwitterskypewhatsapp
PMO Wants Finance Ministry to Restudy Overseas Sovereign Bond Plan: Report
A file photo of the ministry of finance, New Delhi.
Loading...

New Delhi: The Prime Minister's Office (PMO) wants the finance ministry to reassess the idea of issuing foreign currency overseas sovereign bonds, two sources with knowledge of the development said on Thursday.

The office has asked the finance ministry to seek wider consultation from stakeholders before proceeding with any plans, said the sources, who declined to be identified as they were not authorised to speak to the media.

The Ministry of Finance and the PMO declined to comment on the matter.

This month, Finance Minister Nirmala Sitharaman said in her budget speech that India would look to issue overseas foreign currency sovereign bonds.

The idea, however, has been criticised by former heads of the Reserve Bank of India, economists and allies of the ruling Bharatiya Janata Party alike, as they argued it could create long-term economic risks by exposing the government's liabilities to currency fluctuations.

The benchmark 10-year bond yield rose as much as 11 basis points to 6.55% after the news of a rethink of the proposal, as market participants fear this may boost government borrowing in the domestic market.

The PMO was not properly apprised of the consequences of overseas dollar-denominated bonds by outgoing finance secretary Subhash Chandra Garg, who originally pushed this idea, said one of the two sources, who is an adviser to the government.

The proposal to raise funds via overseas bonds is likely to be withdrawn, and as an alternative, the government could raise funds through rupee-denominated bonds in the overseas market, he added.

Garg, a high-flying finance ministry bureaucrat, was in a surprise move transferred to the less high-profile power ministry late on Wednesday.

Garg was a central figure amid the tension that arose between the government and the RBI in 2018, that culminated with the sudden departure of former RBI governor Urjit Patel in December.

It was not immediately clear whether Garg's transfer was linked to the fallout from the overseas bond proposal, but a third source told Reuters on Thursday that Garg had applied for voluntary retirement after being handed the transfer.

Garg told media later on Thursday that he had sought voluntary retirement, but would serve out a notice period of three months and take charge as power secretary until then.

He declined to comment on the sovereign bond issuance.

The finance ministry declined to comment on Garg's transfer, or voluntary retirement application.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

| Edited by: Ahona Sengupta
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 56.30 -13.91
LIC Housing Fin 414.00 -10.66
Indiabulls Hsg 450.55 -6.82
DLF 144.45 -15.82
Maruti Suzuki 6,208.55 -0.33
Company Price Change %Gain
LIC Housing Fin 412.85 -10.97
Yes Bank 56.30 -13.91
DLF 144.30 -15.91
Indiabulls Hsg 449.90 -6.82
Tata Steel 333.35 -2.83
Top Gainers
Company Price Change %Gain
Britannia 2,440.75 2.36
Dr Reddys Labs 2,545.40 1.69
Tech Mahindra 682.75 1.48
TCS 2,216.00 1.36
HUL 1,872.10 1.19
Company Price Change %Gain
TCS 2,214.90 1.33
HUL 1,872.25 1.21
HCL Tech 1,078.45 0.63
Top Losers
Company Price Change %Gain
Yes Bank 56.30 -13.91
Vedanta 129.05 -7.79
Indiabulls Hsg 450.55 -6.82
Bajaj Finserv 6,767.35 -5.30
Bajaj Finance 3,114.10 -4.52
Company Price Change %Gain
Yes Bank 56.30 -13.91
Vedanta 129.05 -7.76
Bajaj Finance 3,117.80 -4.39
Coal India 180.70 -4.26
Tata Motors 107.65 -4.14

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results