RBI to study govt guarantees

NEW DELHI, JAN 5: The Reserve Bank of India RBI will soon come out with a report on problems arising out of guarantees provided by Central and state governments for borrowing programmes of public sector and state enterprises, RBI deputy governor Y V Reddy said today.

A working group appointed by RBI is studying the quot;emerging problems relating to guarantees provided by Central and state governments and the report will be out soon,quot; Reddy said chairing a seminar on the issues before the Eleventh Finance Commission here. He said there was an increasing demand for issuing municipal bonds as a means of financing urban infrastructure.