Date:23/04/2005 URL: http://www.thehindubusinessline.com/2005/04/23/stories/2005042302060300.htm

Back Permit NBFCs to go in for ECBs: Assocham

Our Bureau

New Delhi , April 22

THE Associated Chambers of Commerce and Industry has asked the Government to permit non-banking financial companies to going in for external commercial borrowings (ECBs), on lines of the facility provided to non-governmental organisations.

NGOs have recently been permitted to go in for ECBs while the demand of NBFCs for raising ECBs is still pending with the Government, an Assocham release said here.

The chamber has said that the ECB facility is necessary for NBFCs as these banking companies are allocating a significant portion of their total borrowings to support small and medium enterprises by various financial schemes, which support infrastructure projects to generate employment and accelerate growth process, it said.