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IFCI to delay payments on some bonds

State-run development financial institution IFCI Ltd has delayed payments on the principal amounts of some bonds issued in 1996 after talks with the bond holders, a senior official of the company said on Monday.

"There has been some delay of a few days. But we have not defaulted," said a senior IFCI official, who did not wish to be identified.

The IFCI official gave no reason for the delay in payments but said the delays were only with regard to the principal and that interest payments were being made on time.

The IFCI official said the delay related to bonds of Rs 70-80 billion issued in 1996 to some leading companies.

"We have talked to them and they have agreed to wait for some days," the official said.

IFCI, India's first development institution, was set up in 1948, to provide credit to medium and large industries.

The government owns a 58.47 per cent stake in Industrial Development Bank of India, which in turn owns 31.7 per cent of IFCI. The remaining stake is held by state-run insurance companies, the Unit Trust of India, banks and public shareholders.

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