Overview
- The agreement with an 18‑bank consortium carries three‑month KIBOR minus 0.9% pricing over a six‑year tenor with 24 quarterly instalments.
- About Rs659.6 billion restructures existing Power Holding Limited loans, while roughly Rs565.4 billion provides fresh financing to clear overdue payments to power producers.
- The repayment stream redirects the already‑levied Rs3.23/kWh debt service surcharge to lenders, with officials saying no additional levy is required.
- The structure releases around Rs660 billion in sovereign guarantees, which banks say will free liquidity for lending to agriculture, SMEs, housing, education and healthcare.
- Analyses project total consumer‑funded repayments could near Rs1.94 trillion once interest is counted, and the government frames the deal as aligned with IMF‑linked reforms including DISCO privatisation and loss reduction.