Debt Crisis

RBI relaxes norms for FPI investments in corporate debt securities

The Reserve Bank on Thursday relaxed norms for investments by foreign portfolio investors in corporate debt securities through the general route by withdrawing certain requirements. At present, investments by FPIs in corporate debt securities through the general route are subject to the short-term investment and concentration limit. "On a review, and with a view to providing greater ease of investment to FPIs, it has been decided to withdraw the requirement for investments by FPIs in corporate debt securities to comply with the short-term investment limit and the concentration limit," the RBI said in a circular. General route 1 for investment in government and corporate debt securities by FPIs, subject to specified investment limits and macroprudential limits.

India's consumption slowdown: A temporary dip or deeper concern?

Stagnating wages, derivative losses, and rising debt burdens-India's consumption story grapples with multiple challenges

Sri Lanka govt ratifies debt restructuring agreement for $ 14.2 bn

Sri Lanka's new government on Tuesday announced that it has ratified the agreement for debt restructuring sealed in the previous regime for USD 14.2 billion compulsory to maintain debt sustainability by the IMF through an exchange of new bonds for the existing bonds. The development comes days after the National People's Power (NPP) government on Saturday got the International Monetary Fund (IMF) approval for a staff-level agreement to secure the fourth tranche of the nearly USD 3 billion bailout package, something that President Anura Kumara Dissanayake backed despite his pre-presidential election rhetoric to renegotiate with the global lender to water down tough conditions. The debt restructuring agreement was reached in the last week of the then President Ranil Wickremesinghe's regime in September, days before the presidential polls. A final consensus on restructuring debt by the members of the Official Credit Committee (OCC) of major bilateral creditors in June 2024. In ...

Perils of the 'push' loan phenomenon and rural India's rising debt burden

Rural households are increasingly depending on borrowed money to meet everyday consumption needs, a practice that is not sustainable in the long run

India bond yields likely to ease tracking US peers, eyes on debt auction

The US Treasury yields slipped on Thursday ahead of inflation reports that are pivotal for the Federal Reserve's higher-for-longer rate strategy

Central banks have saved the world in the past. And will do so again

'Central banks will occupy an ever-more important position in the economic and security life of nations, if history is any guide'

How a debt iceberg might turn resources titan Vedanta into Titanic

A corporate presentation notes the "consistent shareholder returns" from more than $11 billion in dividends over the past decade

Delhi govt begins special audit of Jal Board amid agency's rising debt

The Delhi government has begun a special audit of the DJB amid the water works agency's rising debt and shrinking revenues, sources said on Tuesday. The Finance department of the Delhi government conducting the special audit will also look into alleged instances of fund diversion by the Delhi Jal Board (DJB) from capital heads to other works, they said. The audit will find out how a corpus of Rs 12, 712 crore provided in the last five years was utilised by the DJB even as its debt has soared to around Rs 70,000 crore from over Rs 26,000 crore in 2018, sources said. The DJB, apart from production and distribution of water and disposal of sewerage, also looks after Yamuna cleaning in the city. It is currently executing various projects worth Rs 18,000 crore, official sources said. They said it has come to knowledge that the DJB in the past diverted funds under capital heads to meet its pending bills for various projects. Out of Rs 1,557 crore provided to it this year for various work

Vedanta split unlikely to help parent's near-term debt crisis: Analysts

Vedanta Resources, is battling a host of rating downgrades triggered by worries over outstanding dues - $6.4 billion as of May - according to the company

Here's how China's Country Garden can crawl out of its debt crisis

It won't be easy. Country Garden doesn't benefit much from the government's latest measures, at least not immediately

Inflation a key issue the world faces: PM Narendra Modi ahead of G20 Summit

'India as G20 chair has given confidence to Third World'

China's property woes: Implications of the debt crisis at Country Garden

Since the sector's debt crisis unfolded in mid-2021, companies accounting for 40% of Chinese home sales have defaulted, most of them private property developers

Pakistan's ex-Central Bank chief worried about country's looming default

Pakistan needs a "constructive relationship" with the global financial institutions if it wants to avoid a default, the former chief of the cash-strapped country's central bank has said. The remarks by Reza Baqir, the former governor of the State Bank of Pakistan came as he addressed the final session of the Pakistan Literature Festival, held on Saturday in London. He said that if there is a default, Pakistan will go through a painful, protracted process. Pakistan's chances for the revival of the current USD 6.5 billion International Monetary Fund programme have almost diminished before it expires on June 30. Out of the USD 6.5 billion packages, the IMF has not yet disbursed USD 2.6 billion to Pakistan. I am concerned because our relationship with the international financial community has not improved over the last few months. The deterioration comes in terms of substance and communication. If we want to avoid default, we have to have a constructive relationship with those who are

EAM flags supply chain disruptions, prolonged debt crisis as key challenges

The prospects of a global economic recovery remain dim amid supply chain disruptions, prolonged debt crisis and pressures on energy, food and fertiliser security, External Affairs Minister S Jaishankar said on Monday, calling for a united global approach to deal with the challenges. In an address at the G20 Development Ministers' conclave here, he also said that India has put forward an ambitious seven-year action plan for accelerating progress on the Sustainable Development Goals (SDGs) that presented an integrated and inclusive roadmap for G20 actions. The roadmap focuses on digital public infrastructure and fostering data for development, investing in women-led development and energy transition to protect the planet. "The world today faces unprecedented and multiple crises -- from the pandemics to the disruptions in supply chains, from the impact of conflict to climate events, our era is becoming more volatile and uncertain by the day," Jaishankar said. "Added to this is the ...

Byju's accuses lenders of manufacturing fake debt crisis to extort money

The company chalks up its current debt predicament to aggressive distressed-debt investors who, in its view, were never supposed to be able to buy the loan

Vedanta's Rs 2,632-crore brand fee helps VRL repay part of its debt

This comes after Anil Agarwal-owned holdco raised brand fee to 2% of turnover for its India biz

The frantic push to solve sovereign debt crises irks Wall Street

In New York, a cohort of debt-relief activists and US state politicians are pushing for a more-permanent solution: a law that would overhaul the process of restructuring sovereign debt

World Bank chief economist calls for new approaches to address debt crisis

The Common Framework should be replaced, he said, in the strongest terms used by a World Bank official. "It's not the right machinery"

How India is breathing easy on corporate debt amid crisis elsewhere

Indian companies are doing better than peers, but business is slowing down

Guterres calls on G20 finance ministers to find solutions to debt crisis

UN Secretary-General Antonio Guterres is asking the G20 finance ministers meeting in Bengaluru to take bold steps to reform the international development banks and find ways to solve the debt crisis