US and European insurance and pension funds to be tapped Talks with UAE also for crude oil and refined petroleum Government is to proceed with talks for a massive US$ 2.5 billion loan from foreign insurance or pension funds to offset part of the accumulated fuel import bills, ministerial sources said. The Cabinet has approved [...]

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Govt. to negotiate US$ 2.5 billion loan to pay for fuel import bill

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  • US and European insurance and pension funds to be tapped
  • Talks with UAE also for crude oil and refined petroleum

Government is to proceed with talks for a massive US$ 2.5 billion loan from foreign insurance or pension funds to offset part of the accumulated fuel import bills, ministerial sources said.

The Cabinet has approved the proposal after studying several unsolicited proposals by private agents to offer a loan to the Government.

A cabinet appointed Procurement Committee has studied the proposals and a decision has been made to further negotiate the terms on obtaining the loans. The offers have been made to obtain the loans from US and European insurance and pension funds.

A decision had been taken to proceed with the talks as the interest rates were more beneficial than the current rates paid for the foreign loans pending for the fuel purchases and the repayment period was beyond 10 years.

Advice from the Attorney General’s Department too had been sought on the proposed plan.

The moves come in the wake of talks with the United Arab Emirates (UAE) to import crude oil and refined petroleum directly from that country with the aim of meeting the present fuel requirement. Energy Ministry sources earlier said the objective was to reduce the cash flow with the expectation to save US$ 2 billion which could be used for imports of other essentials.

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