Current Affairs · Banking and Finance
What is the main objective of the partial credit enhancement facility proposed by NaBFID for infrastructure sector bonds?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To help foreign investors gain better returns from infrastructure bonds in India.
- 2To provide government-backed guarantees for infrastructure bonds issued by public sector companies.
- 3To increase the credit enhancement cap from 20% to 50%, enabling better access to bond markets.✓
- 4To reduce the interest rates on infrastructure bonds issued by private companies.
Correct answer
To increase the credit enhancement cap from 20% to 50%, enabling better access to bond markets.
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