his New Year has brought some good news for real estate companies, many of which were believed to be on the threshold of bankruptcy due to a liquidity crunch, mounting debts and little chances of loan refinancing. The interest rates at which realtors were borrowing last year have cooled by 250 basis points (bps), or 2.5%. Two major realtors, DLF Ltd and Unitech Ltd, are borrowing at interest rates lower than the October 2008 peaks, as various measures taken by the government have started showing results. From 16% in October, the interest rates for developers have fallen to 13-14%. Mr. Ramesh Sanka, the chief financial officer of DLF, said that the company is now borrowing at costs lower than in October. “Interest rates have started cooling off. Borrowing rates are down by 250 bps. So the liquidity situation will start improving,”

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