The Resurgent India Bonds (RIBs), floated on August 5, 1998 by the State Bank of India(SBI) with the approval of the Government of India and the Reserve Bank of India(RBI), have been redeemed on their maturity on 0ctober 1, 2003. The foreign exchange outgo is equivalent US $ 5.185 billion. The Reserve Bank has sold this amount to SBI to meet their obligations to bond holders towards principal and accumulated interest. The entire foreign exchange liability under the RIB scheme has been fully met on the due date. Foreign exchange outgo Out of the total sale of USD 5.185 billion, the Reserve Bank has utilised its forward foreign currency receivables of USD 2.794 billion and the balance USD 2.391 has been met from out of the Reserve Bank’s foreign exchange reserves. The draw down on the reserves will be reflected in the data to be published in the weekly statistical supplement to the RBI Bulletin. SBI has paid Rs. 22151.83 crore to the Reserve Bank towards the purchase of foreign exchange based on the average rate of RIB proceeds sold by SBI to the Reserve Bank. The exchange loss has been fully met from the balance available in the Maintenance of Value account, subject to apportionment between the Government of India and SBI in the agreed ratio. Impact on the market The redemption process was very smooth, as evidenced by the absence of any volatility in the money, foreign exchange and securities markets. Alpana Killawala
General Manager Press Release: 2003-2004/456 |