RRaahUPSC
2017 · Current AffairsPrevious Year Question
Q14.
Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?
A. It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
B. It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
C. It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
D. It is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.
Answer

B

Explanation

The S4A by RBI envisages determination of the sustainable debt level for a stressed borrower, and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around.
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