New Delhi: Government on January 27 decided for the first time to repay ahead of schedule this year two major ADB (Asian Development Bank) and World Bank foreign currency loans totalling $ 2.8 billion in the face of comfortable foreign exchange reserves, now at over $ 72 billion.

An official announcement said the Central government would repay pre maturely $ 1.25 billion ADB loan and $ 1.54 billion IBRD loan this financial year through the foreign exchange reserves.

"This premature repayment will be financed entirely through domestic market borrowing," the statement said adding this swapping of fixed rate foreign currency debt with fixed rate rupee debt would be advantageous to the country.

PTI