In a bid to improve the investment climate, banks are putting pressure on the RBI to relax funding norms to get over financial constraints faced by borrowers. At recent meetings with RBI officials, some banks have presented elaborate notes listing the concessions necessary to rev up new projects, apart from expansions and diversification plans of existing lenders. Suggestions include permission to grant clean loan facility with negative lien clause.

Trade deficit widens

The latest foreign trade data, released by the Government, shows a high trade deficit of over $5.25 billions in the first eleven months of the fiscal year 1996-97. In spite of the lower growth of both exports and imports during this period, the trade deficit in 1996-97 is 22.25 per cent higher than during April- February 1995-96 ($4.30 billions). Exports during April-February 1996-97 are estimated at $29,800.31 millions which represents a growth of 5.61 per cent over the export level valued at $28.218.49 millions for the same period last year. This is down from the 21.38 per cent growth during the same period last year.

Political drama goes backstage

The drama in the ongoing battle of wits between the United Front and the Congress (I) receded into backstage manoeuvres to find a viable solution and avoid the possibility of a mid-term poll which is looming large. Even while “trouble shooters” from both the parties were discussing various options, the UF and the Congress maintained they would not budge from their present stand — the Congress demanding the resignation of the Prime Minister and leading a coalition, and the UF refusing a change of leadership and preferring a poll instead.

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