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Government is neither interfering with nor pressuring FIs, Sinha tells RS

Finance Minister Yashwant Sinha today stoutly denied in the Rajya Sabha the Opposition charge that the government is interfering with the financial institutions to favour anybody with regard to provision of financial assistance in individual cases.

''I am saying with full emphasis at my command that it is not the intention of the government to interfere with the decisions of the financial institutions,'' he asserted while replying to supplementaries during the question hour.

Sinha clarified that the government does not take a decision in this regard, but the financial institutions on their own decide on the merits of the case the question of loan, equity or working capital in the individual cases. They look at the debt equity ratio, financial viability after receiving applications.

''It is entirely the judgement of the financial institutions, not the government, that matters,'' the minister said, adding it is not the intention of the government to substitute the judgement of the financial institutions with their own judgement.

The minister also clarified that the financial institutions do not make any distinction between public and private sector projects for providing assistance.

UNI

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