In the past months, in particular after the failure of Lehman Brothers, which led to an intensification of tensions in money markets,15 European governments have discussed and put forward packages that aim at alleviating risks associated with bank assets, improving banks’ solvency and generally enhancing confidence in the banks.
These measures were followed up with an announcement that withholding tax liability will be reduced to 5 per cent from 20 per cent for the overseas borrowings /bond issuances for infrastructure sector by Indian firms during July 2012 and June 2015. A debt relief package for the state power distribution companies (discoms) has now been approved.