Karnataka to terminate World Bank loans

  • 10/05/2004

  • Business Line (New Delhi)

Taking a cue from the Centre, the Karnataka Government has proposed to terminate its borrowing from the World Bank for Economic Restructuring. Instead, official sources said here, the State Government has sought an alternative borrowing amounting to Rs 3,500 crore. This borrowing was intended for meeting the fiscal reform costs. The officials said the resources had been sought as a one-time relaxation in the market-borrowing limit or directly from the Centre. Relaxation in the market borrowing would imply allowing a larger market borrowing over and above the current limits.