The newest state of the country, Telangana has to start a loan repaying spree from January 2015. States usually take ‘State Development Loans’ through various financial organizations with bonds of 10 years. Governments will have to pay interests for the bond holders for every three months and the principal amount will be paid after 10 years.
The United State took 92000 Crores of such loans and those are shared between both the states after bifurcation. For the loans taken in 2005, the repayment should be done in January 2015. Telangana will repay its first loan on January 13th 2015.
Like this, loans have to repaid 6 times in 2015 and 7 times in 2016. Since the loans are not officially divided between AP and Telangana, the loans repayments were not shown in the Telangana budget tabled recently. So the state government has to bring new loans from outside to repay the old loans.
