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July 13, 2001
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Money > Business Headlines > Report July 13, 2001 |
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Worried PMO monitors US-64 developmentsBS Economy Bureau The Prime Minister's Office is monitoring the recent developments on the US-64 front as it is worried about its impact on the government's fortunes. The situation arises even as it is already under fire for having reduced interest rates on small savings and that on the Employees Provident Fund. Prime Minister Atal Bihari Vajpayee talked to Finance Minister Yashwant Sinha Thursday night to take stock of the latest developments, and some of the heads of the financial institutions also met the PMO on Thursday. The meeting is significant as the finance ministry also had several rounds of parleys with the institutions to find a way out in the US-64 sale and repurchase freeze issue. The PMO has reason to be worried, as the government is certain to get a lot of flak once Parliament convenes for the monsoon session on July 23. While a calling attention motion is almost a certainty, the finance minister is also expected to make a statement on the floor of both Houses. The problem is that the US-64 controversy has again hit the fixed income group people. The UTI decision on a freeze comes on the heels of the announcement in the Budget to dismantle the administered interest rates on small scale savings in favour of a market determined rate of interest. The decision to reduce the interest rate on EPF by 1.5 per cent has come under sharp attack from labour unions and there have been representations from even Union ministers to Sinha to reconsider it. Powered by YOU MAY ALSO WANT TO READ:
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