New Delhi, Sep 17: Government today said it was planning to prepay over 2.9 billion dollars costly foreign loans this fiscal, which would be funded through domestic market borrowing. "We are planning to prepay 1.4 billion dollars multilateral loans and another 1.5 billion dollars bilateral loans this fiscal," budget secretary D Swarup said at the weekly review meeting here.
He said the government was talking to multi-lateral agencies like World Bank and Asian Development Bank to identify the high-cost for early repayment.

"If we identify high cost debt worth over 1.4 billion dollar multilateral loans, we may repay more this fiscal," he said, adding the total prepayment would be more than 2.9 billion dollars.
Government would raise resources from the domestic market to prepay the foreign loans, Swarup said, adding there would not be any impact on the Centre's financial position.
Last fiscal, government prepaid high cost loans worth about 3.0 billion dollars taken from World Bank and Asian Development Bank.
The Centre is also planning to swap high-cost debts of states worth Rs 18,000 crore this fiscal. Bureau Report