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      Question

      Under the Credit Enhancement Scheme , which of the

      following is TRUE?
      A IIFCL provides full guarantee for bond issuance Correct Answer Incorrect Answer
      B Credit enhancement is limited to 10% of project cost Correct Answer Incorrect Answer
      C Credit enhancement is limited to 10% of project cost Correct Answer Incorrect Answer
      D It is applicable only for government-owned companies Correct Answer Incorrect Answer
      E Bonds must have a maximum tenure of 3 years Correct Answer Incorrect Answer

      Solution

      Explanation:
      IIFCL provides an unconditional and irrevocable partial credit guarantee to: ·         Enhance bond ratings to AA or above ·         Enable access to long-term funds from investors like pension/insurance funds

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