• Friday, September 17, 2021
India Corona Update 
Total Fatalities 443,928
Total Cases 33,347,325
Today's Fatalities 431
Today's Cases 30,570
Pakistan Corona Update 
Total Fatalities 418,480
Total Cases 31,216,337
Today's Fatalities 3,998
Today's Cases 42,015
Sri Lanka Corona Update 
Total Fatalities 418,480
Total Cases 31,216,337
Today's Fatalities 3,998
Today's Cases 42,015
Bangladesh Corona Update 
Total Fatalities 418,480
Total Cases 31,216,337
Today's Fatalities 3,998
Today's Cases 42,015
UK Corona Update 
Total Fatalities 418,480
Total Cases 31,216,337
Today's Fatalities 3,998
Today's Cases 42,015
India corona update 
Total Fatalities 443,928
Total Cases 33,347,325
Today's Fatalities 431
Today's Cases 30,570

Business

Greensill used state-backed loans to cut exposure to Gupta’s firms

FILE PHOTO: Sanjeev Gupta, head of the GFG (Gupta Family Group) Alliance,( BEN STANSALL/AFP via Getty Images)

By: Shilpa Sharma

GREENSILL BANK used loans from three European governments to mitigate exposure to companies owned by businessman Sanjeev Gupta and to calm regulators’ concerns over its lending to Gupta’s GFG Alliance, the Financial Times reported.

Last year, Greensill’s Bremen-based banking subsidiary came up with a plan to use government guarantees to balance its credit risk, the newspaper said, citing a report by the bank’s administrator CMS Hasche Sigle.

As per the plan, Greensill would use government-backed loans extended to three GFG companies from France, Italy and the Czech Republic, totaling about $225 million (£184m), as cash collateral against the bank’s existing loans to GFG.

This move was preceded by pressure from the German financial watchdog BaFin to limit its extensive lending to GFG, the report said.

Supply chain finance group Greensill Capital slipped into administration in March.

GFG Alliance, owned by Gupta, had been Greensill’s biggest customer at the time of its collapse.

Greensill’s burst highlighted Gupta’s business practices, with the UK government describing the GFG structure as “very opaque” after declining to rescue it.

Currently, GFG is facing a criminal investigation by the UK’s Serious Fraud Office.

 

Eastern Eye

Related Stories

Eastern Eye

Videos

Mamta Handa on her chat show Be You, experience of…
Pranutan Bahl on Helmet, its direct-to-digital release, if Salman Khan…
Karan Nath on his journey in Bigg Boss OTT, his…