Government determined to contain IL&FS crisis so that there is no adverse impact: Jaitley

PTI Delhi, India Oct 04, 2018, 07.25 PM(IST)

File photo of Union Minister Arun Jaitley. Photograph:( Twitter )

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The government has put in place a new board led by eminent banker Uday Kotak. The new board held its first meeting on Thursday.

Finance Minister Arun Jaitley Thursday said the government is determined to contain the crisis at the IL&FS at the earliest so that it does not leave any adverse impact.

The government earlier this week superseded the board of IL&FS, which has a debt burden of Rs 91,000 crore and has defaulted on a series of loan repayments. The crisis at the IL&FS has triggered concerns of a liquidity squeeze in the NBFCs and mutual funds.

The government has put in place a new board led by eminent banker Uday Kotak. The new board held its first meeting on Thursday.

"The government is determined to make sure that since this is an internal factor to India this should be contained quickly so that no adverse impact of it is left," Jaitley told reporters here.

He said there has been a "significant impact" on the markets in last few days on account of the contagion effect that took place on account of uncertainties over IL&FS.

"The government has taken a decisive step in that regard, replaced the board and of course under the new board now it would take various decisions," he said.