Jul
15
Ghosts of Loans Past Coming Back to Haunt India’s States
By-
RBI report highlights risk of fiscal slippage for states
- Report sees states’ redemption pressure peaking in 2026-27
Indian states raked up debt to fund widening deficits after the global financial crisis. They may now have to borrow more to meet repayment commitments, a report from the central bank showed.
Redemption pressure on states, which normally issue plain vanilla bonds with 10-year maturity, increased from the year ended March 2018, according to the Reserve Bank of India’s Study of State Finances. That implies that their borrowings are expected to soar…
