Page 2 - India Debt

Debt cost begins to pinch states again with 9 bps spike in last auction

After falling for six weeks on the trot, the cost of borrowings for the states rose for the second week with the latest auction on Tuesday, when their average cost of debt rose by 9 bps to 7.65 per cent. At the last auction, the average cut-off rose by 10 bps to 7.56 per cent, which was the first spike in the past six weeks. The spike in average cost reflects the overall interest tightening taking place in the system after the US Fed went ahead with its third 75 bps hike last week and said it will deliver at least two more to fight inflation, which is trending at over 40 years high. The weighted average cut-off of state debt rose by 9 bps to 7.65 per cent from 7.56 per cent in the last auction, with the weighted average tenor remaining stable at 15 years. On the other hand, the 10-year Ge-Secs yield inched up by 3 bps to 7.29 per cent, Aditi Nayar, the chief economist at Icra Ratings said in a note. The weighted average cut-off for the 10-year state debt increased by 12 bps to 7.67

Bank of Baroda subscribes to 99,000 shares of IDRCL

Public sector Bank of Baroda on Friday said it has subscribed to 99,000 shares of asset reconstruction company India Debt Resolution Company Ltd (IDRCL).

Total debt expected to increase to 61.7% of GDP in FY'22: Minister

The government informed Parliament that it expects the total debt as percentage of GDP to increase to 61.7 per cent (provisional) in 2021-22 from 60.5 per cent (provisional) in the previous fiscal.

Global public debt could touch 98% of GDP in 2020 amid Covid crisis: IMF

India's government debt is expected to remain elevated at 83 per cent of GDP

India currency, debt, equity markets closed on Friday for Christmas

India's currency, debt and equity markets are closed on Friday for Christmas. The markets will resume trading on Monday, December 28

India among large EMs set for highest debt burden by 2021, says Moody's

Large emerging market sovereigns will have higher debt burdens for the next few years, says ratings agency.

India's economic fundamentals demand a much better rating: CEA Subramanian

India's ability and willingness to repay debt is gold standard, he said making a case for ratings upgrade

Concessional tax rate on debt puts foreign funds on sticky wicket

Experts believe the lower tax rate is a significant contributor in making India's debt market attractive to overseas investors

India, Indonesia are among Asia's most debt-risky nations: Moody's

Moody's Investors Service's external vulnerability index puts Indonesia at 51 per cent and India at 74%