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Govt. has recently asked all departments to undertake a review of government guarantees given by respective ministries to their Central Public Sector Enterprises (CPSEs) or entities. Consider the following statements regarding the government guarantees given to CPSEs.
1. It improves the viability of projects under taken by PSUs.
2. It enable public sector companies to raise resources at lower interest charges.
3. FRBM Rules has defined government’s limit for Govt. guarantee to CPSEs.
Which of the above statements is/are correct?
Choose the correct answer using the codes above:
1 and 2 only
2 and 3 only
1, 2 and 3
1 and 3 only
Guarantees are contingent liabilities having the potential to impact the financial performance of the government.
The sovereign guarantee is normally extended for the purpose of achieving the following objectives:-
By: Deepak Thakur ProfileResourcesReport error
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