Rule 276 — GFR

Rule 276 Objectives of Government Guarantees: The sovereign guarantee is normally extended for the purpose of achieving the following objectives:

(i) To improve viability of projects or activities undertaken by central entities with significant social and economic benefits;

(ii) To enable central public sector companies to raise resources at lower interest charges or on more favourable terms;

(iii) To fulfill the requirement in cases where sovereign guarantee is a precondition for concessional loans from bilateral/ multilateral agencies to central public sector companies/agencies.