Consider the following statements about Scheme for Sustainable Structuring of Stressed Assets S4A 1 ...........

Economic Affairs Public Finance and Debt Management

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Consider the following statements about Scheme for Sustainable Structuring of Stressed Assets (S4A).

1.It is not applied to projects under construction.

2.The total loans to the entity should be 500 crore or more

Which of the statements given above are correct?

Only 1

Only 2

Both 1 and 2

None of the above

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Explanation:

Both 1 and 2

It is not applied to projects under construction: This statement is correct. The Scheme for Sustainable Structuring of Stressed Assets (S4A) is not applicable to projects under construction. It is primarily designed for addressing the financial stress in completed projects.

The total loans to the entity should be 500 crores or more: This statement is correct. According to the S4A framework, for a debt to be eligible under this scheme, the aggregate exposure of all institutional lenders in the consortium should be greater than 500 crores.