ALSO READRBI eases foreign investment rules for corporate debt RBI deputy Acharya says short-term debt key vulnerability SEBI tweaks rules on foreign purchases of rupee corporate debt Air India disinvestment: Workers want govt to waive debt, not sell airline RBI eases rules for short-selling in govt bonds
MUMBAI (Reuters) - The Indian government's debt rollover risk in the next five years is low given the amount of domestic debt that needs to be repaid every year is an average of 5.3 percent of its outstanding stock, it said in a report on Tuesday.
The rollover risks will get further mitigated through buyback or switching of short-end bonds with longer tenure papers by the government in the market, it said in its quarterly debt management report.
"The implementation of budgeted buyback/switches in coming period is expected to reduce rollover risk further," the finance ministry said.
India bought back 170.16 billion rupees worth of bonds maturing in 2017/18 and sold in its place 2024/25 and 2029/30 papers to a bank in June under one of its switches, it said in the report.
Meanwhile, banks' holding of government debt as of end-March eased to 40.5 percent of outstanding stock from 41.8 percent a year ago, while insurers increased their holdings to 22.9 percent from 22.2 percent in March 2016.
The central bank's holding of sovereign debt also went up to 14.7 percent of the total stock as of March 2017 from 13.5 percent a year ago.
(Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)