• Union Finance Minister has proposed a long-term infrastructure bond with a fixed coupon rate.
• He said he was keen to reignite long-term financing in the country and had floated the idea with a large bank.

• In the last four to five weeks, the minister said, the focus had been on regaining ability to get credit back into the system.
• The minister said he had suggested the idea of a 25-year bond to a senior official of the largest bank over the weekend.
• He said, long-term financing was a worry for the segment, especially after the transformation of IDBI and ICICI into universal banks.
• The Union Minister wondered why banks were not floating long­term infra bonds with fixed coupon rates to raise money.
• The Minister said that such bonds would also provide a stable income flow to retired persons as well.
• Speaking on the lending activity of banks, the Minister said he had been focusing on the ability of the banking system to lend and trying to ensure that.

The Hindu.