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Masala Bond will burden the exchequer Kerala Opposition Leader Ramesh Chennithala

Alleging corruption and nepotism in the deal, Chenithala said that the bonds will benefit SNC-Lavalin.

Published: 09th April 2019 03:00 AM  |   Last Updated: 09th April 2019 03:00 AM   |  A+A-

Opposition leader Ramesh Chennithala seen busy with his mobile phone just before speaking to journalists at the meet-the-press programme (Janayatham-2019) organised by Thiruvananthapuram Press Club on Monday

Opposition leader Ramesh Chennithala seen busy with his mobile phone just before speaking to journalists at the meet-the-press programme (Janayatham-2019) organised by Thiruvananthapuram Press Club on Monday | BP Deepu

By Express News Service

THIRUVANANTHAPURAM: Opposition leader Ramesh Chennithala on Monday said the ‘Masala Bond’ which is to be listed at an interest rate of 9.72% at the London Stock Exchange will be a huge burden on the exchequer in the long run. He said the state will have to pay Rs 209 crore every year for  25 years, amounting to Rs 5,213 crore for the Rs 2150-crore bond amount. He said the simple interest and principal amount will add upto Rs 7,363 crore in 25 years.

He was addressing journalists during the Meet the Press programme of the Thiruvananthapruam Press Club ‘Janayatham 2019’. Chennithala said the deal is clandestine and added while Kochi Metro Rail Corporation received Rs 1350 crore at a rate of 1.35% during the UDF Government for  25 years, there is no logic on the part of the state government to issue Masala Bond at a huge rate of 9.72%.

Chennithala said, “There was corruption and nepotism in the deal. The Opposition should have been briefed by the government. We demand to see the files on the communication which took place with the Canadian Pension Fund Company”.he said the CDPQ which is the Canadian Pension Fund Company has 20% share in SNC-Lavalin.

LDF has nothing to cover up, counters Kodiyeri

KOTTAYAM: CPM state secretary Kodiyeri Balakrishan on Monday said the LDF Government has nothing to cover up in the KIIFB Masala Bond issue as the entire transaction was legal and transparent. “The CDPQ company from which the government received investments is recognised by the Centre and the transaction was made with the RBI’s permission,” Kodiyeri told reporters here on Monday. “Hence, the transaction was not secret business,” he said. He said Congress is creating a smoke screen by disseminating things which are against facts.



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  • G Suresh

    There are no free lunches in the economy. Interest rates depend on the market and why would Kerala government borrow. ?? They should live within their means. The state has no other repayment means and This borrowing will saddle future generations with an unacceptable liability.
    2 years ago reply
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