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Govt to finalise UTI bailout package this week

India will finalise a bailout package for the country's largest state-run mutual fund manager, Unit Trust of India, by the end of this week, a senior government official said on Monday.

"We will definitely finalise the package for UTI by the end of this week. A bond issue is among several options being considered for the package," finance secretary S Narayan told reporters.

But he said no final decision had been taken on the bond issue itself.

An Indian financial daily had said on Monday New Delhi was considering an issue of bonds tradeable in the secondary market to raise funds required to bail out UTI's flagship US-64 scheme.

The scheme was hit by redemption pressure last year following a stock market scandal and faces a shortfall of about Rs 5,500 crore (Rs 55 billion).

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