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India’s “twin balance sheet” (TBS) problem - that of rising corporate stress and the resultant pile-up of bad debt on banks’ books - doesn’t show any signs of abating; this may ultimately require alternative measures, including some tough decisions to reign in the situation, said the Economic Survey 2016-17.
This TBS problem is not a minor one that can be fixed with economic growth, as earlier thought. Rather, the Survey says it is clear now that “growth will not solve the problems of the stressed firms; to the contrary, the problems of the stressed firms might actually imperil growth.”
This TBS problem is not a minor one that can be fixed with economic growth, as earlier thought. Rather, the Survey says it is clear now that “growth will not solve the problems of the stressed firms; to the contrary, the problems of the stressed firms might actually imperil growth.”
