BJP leader Subramanian Swamy today alleged that Chinese banks gave loans worth over $ 18 billion to the Anil Ambani owned Reliance Telecom and power firms.
Swamy was citing a PGurus report alleging the same.
According to the report, which in turn cites a study by US think tank, Aid Data, between 2008 and 2018, Anil Ambani's debt-afflicted Reliance Companies bagged about $ 15 billion in loans from Chinese banks.
According to the article, these loans were given for purchasing Chinese equipment.
Reportedly in May 2008 Reliance Communications received its first loan of $750 Million from the China Development Bank (CDB) to purchase Chinese telecom equipment from Huawei.
Another loan from the same bank was provided in December 2010 for short term refinancing and to purchase Chinese equipment from Huawei and ZTE.
There are several more loans along similar lines, says the report.
According to a Reuters report from 2012, Chinese state banks have agreed to lend $1.18 billion to Indian billionaire Anil Ambani’s debt-laden mobile carrier Reliance Communications to repay overseas convertible bonds due for redemption on March 1.
As the Reuters article adds, in 2011, the CDB had arranged a $3 billion syndicated loan for the mobile firm and Reliance Power, which was used in part to buy Chinese telecom and power equipment.
Incidentally, in June this year, Chinese lenders including CDB had demanded at least $2.1 billion from Reliance Communications.
According to Bloomberg, state-owned China Development Bank, with loans worth Rs. 9,860 crore ($1.4 billion) was the biggest creditor to the indebted telecom company, according to a filing made by the Indian company to stock exchanges.
Exim Bank of China sought payment of Rs. 3,360 crore, while Industrial and Commercial Bank of China claimed Rs. 1,554 crore, according to the filing.
Mukesh Ambani had, in March, helped his younger brother avert the risk of being jailed by making an $80 million payment on his behalf to the local unit of Ericsson AB for past maintenance services.
