credit interest | Business Upturn

Sri Lanka gets $500 million fuel credit line from India

Malvika Choudhary — Tue, 18 Jan 2022 13:38:43 +0000

The Indian High Commission in Colombo came up with a statement on Tuesday that India presented a fresh $500 million Credit Line to Sri Lanka to fund fuel purchases as the country struggles to manage its worst financial crisis in years. The previous week India also granted Sri Lanka a $400 million swap arrangement to boost its reserves and help repay debt.

The credit line, which was beneath negotiation since August 2021, will ease pressure on the country’s diminishing reserves that dipped to $3.1 billion at the end of December.

“Today we are encountering the climax of a problem for which a number of governments have failed to provide a lasting solution…More than $6 billion a year in foreign debt is to be repaid over the next two years. It is the loans taken by all previous governments from time to time that we have to repay,” President Gotabaya Rajapaksa said.

Economic analysts and opposition politicians defer the payment because of the severe foreign exchange crisis. The compensation of these bonds was allocated in 2012 despite contrasting opinions. The international rating agencies had voiced suspicions over the island nation’s ability to meet its international sovereign bond payments of $1.5 billion, including the first $500 million which matured on Tuesday.

Shipments are getting held up at the port, while power cuts are imposed as the energy sector has been hit due to the forex crisis. They claimed that the nation’s foreign currency reserves should be used to pay for the imports of essentials. Deficiencies of food and essentials are prevailing due to the scarcity of foreign exchange.

The next bond payment amounting to $1 billion is due in July. The total debt owed by Lanka this year is over $6 billion.

Moody’s allocate Baa2 rating to Reliance Industries Ltd bonds issue

Malvika Choudhary — Tue, 04 Jan 2022 06:42:17 +0000

Moody’s Investors Service on Monday assigned a Baa2 rating to the proffered USD-denominated senior unsecured bonds to be issued by Reliance Industries Limited (RIL) with a sturdy perspective.

Reliance last week announced that it aims to raise around USD 5 billion in foreign currency-denominated bonds and use the proceeds to relinquish existing borrowings. Moody’s Investors Service supply investors with credit ratings, risk analysis, and research for stocks, bonds, and government entities.

Moody’s Analytics develops software and tools that help capital markets with risk management, credit analysis, and economic research.

“RIL’s Baa2 ratings reflect the company’s large scale and dominant market position across its diverse businesses, its management’s strong execution track record and our expectation that its credit metrics will remain strongly positioned for its Baa2 rating, despite its planned investments in clean energy and other business segments,” Sweta Patodia, a Moody’s Analyst, said in the rating agency’s press statement.

The companies will share the areas of benefits in the sectors like refining and petrochemicals, digital services, and consumer retail segments. These three segments together generated around Rs 94,400 crore (USD 12.6 billion) or 86 per cent of RIL’s consolidated EBITDA for the 12 months ended September 30, 2021.

“At the same time, the Baa2 rating incorporates RIL’s exposure to the inherent volatility of refining and petrochemical margins, its single location refinery’s concentration risk and the execution risk from its diversification into consumer businesses. The rating also accommodates Moody’s expectation that RIL will use its financial flexibility to make growth-enhancing investments that will boost its business and geographical diversification”, A report released on Feb 3rd, 2015, by Moody’s investor’s service said.

Despite that, the investor’s company showcased that the RIL’s ratings can be upgraded only if the sovereign rating is upgraded because the company’s ratings are masked. The report later added that the RIL’s credit metrics are extremely strong for its sovereign-constrained rating, and only a very substantial depreciation in the credit metrics could put pressure on its credit.

EPFO to credit interest amount soon, Here’s how to check PF account balance

Sneha Sengupta — Wed, 11 Aug 2021 07:29:06 +0000

The Employees’ Provident Fund Organisation (EPFO) is probable to credit the Employees Provident Fund (EPF) interest to personal accounts of about six crore subscribers on an immediate basis, the retirement fund body announced on Twitter. On replying to the subscriber’s queries, the EPFO said that “The process is in pipeline and may be shown there very shortly. Whenever the interest will be credited, it will be accumulated and paid in full. There would be no loss of interest. Please maintain patience.”

EPF interest rate

The EPFO will credit 8.5 per cent EPF interest to the beneficiaries while the retirement fund regulatory body kept the EPF interest rate unaltered for the current fiscal year. In due course of the pandemic, the EPFO had lessened the PF interest rate to 8.5 per cent in March 2020.

The PF subscribers can avail their balance information once the interest is credited to their respective accounts. The subscribers should have their Universal Account Number (UAN) activated in order to check the EF balance.

Following are the ways to check your PF balance:

1. Missed call service

By giving a missed call to ‘011-22901406’ from the registered mobile number, the subscribers can avail of the details. After two rings the call automatically disconnects and interestingly this toll call service is free of cost Members will get their details available with EPFO by giving a missed call from their registered mobile number. However, the subscriber should complete the KYC to avail of the services.

2. SMS

Subscriber needs to type EPFOHO and send it to 7738299899. The SMS should follow the format-“EPFOHO UAN”. This service is available in 10 languages.

3. EPFO portal

After completing the registration process on EPFO Members Portal, log in to – https://passbook.epfindia.gov.in/MemberPassBook/Login# with your UAN and password. This will permit you to view your passbook.

4. Umang app

EPFO members can now check their account balance and EPF statement using the ‘Umang’ mobile application. Search for employee-centric services and then click on view passbook. Enter your UAN and OTP that you will receive on the registered mobile number to see your balance in Employee Provident Fund.