New Delhi: The concessional swap facility provided by the RBI would lower funding costs for many government-owned financial institutions that are now likely to increase their external borrowings, S&P Global Ratings said on Thursday.
To shore up foreign capital inflow, last month, the Reserve Bank had announced opening of a concessional forex swap facility to encourage PSUs to raise external commercial borrowings (ECBs) until September 30. Under this, RBI will offer a concessional 1.5 per cent per annum premium on fixed US dollarIndian rupee swaps for 3-5 years for the ECBs raised by public sector companies.
