Exim Bank of the United States (Exim Bank) has offered Rs. 4,000-Rs. 5,000 crores as loan assistance to the State Government for execution of irrigation projects.
The bank's regional director for Asia, Africa and the Middle East, John Ricter, met the chief minister, Y.S. Rajasekhara Reddy and the minister for Major Irrigation, P. Laxmaiah, at Secretaraiat today.
The Minister later said the American bank official had offered the loan without insisting on a central guarantee, but it is subject to securing of the same from two other sources - financial institutions such as ICICI and the Andhra Pradesh Water Resources Development Corporation which was rich enough with various assets like dams.
Direct guarantee
The Minister said that the bank might also consider the government's direct guarantee depending on the assessments of its credit worthiness under Crisil ratings. Andhra Pradesh enjoyed high ranking under this rating.
