Protest_again
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OMG. so many Bango illiterates on here.
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lol. How dense are you guys? India's sovereign (public) external debt is very low at $106 billion, rest is corporate debt (serviced by corporates). This is the loan the govt will be servicing with its revenue which is quite high (22 times Bango revenue).Umm... what is the link between external debt and reserves? Whilst i assume your reference to $570bn is govt debt that india carries... the $600bn reserves in its bank are not the governments money. It can not just use it without letting out hyperinflation, without junking your bond market and collapsing your economy.
Your understanding of how things are connected is inaccurate. In terms of indebtedness of countries the following graphic may assist you. Debt to reserves are meaningless... its debt to GDP that counts. Srilanka ran out of reserves because its GDP collapsed due to lack of tourism, very silly agricultural reforms and huge debt.
Lack of reserves is a symptom not the cause of srilankas problem. India is far closer to Srilanka than BD.
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An Indian illiterate calling others illiterate lollol. How dense are you guys? India's sovereign (public) external debt is very low at $106 billion, rest is corporate debt (serviced by corporates). This is the loan the govt will be servicing with its revenue which is quite high (22 times Bango revenue).
Bangladesh services $62 billion of public debt with its 22 times lower revenue. India is quite better off also because interest rates on India's loans are quite lower relative to Bangladesh, owing to its better credit rating.
Relevance to reserves come as debt is serviced with dollars (both govt and corporate). Higher the reserves, lower the pressure in servicing these debts. This is where exactly Srilanka and Pakistan is struggling and where Bangladesh is heading. Already external debt to reserves ratio has fallen below 50% in case of Bangladesh.
Do you pay back debt with GDP or revenue? Why are Bangos so dumb?An Indian illiterate calling others illiterate lol
Never heard any economist ever compare tax revenue to debt!
It’s GDP to debt ratio that matters you buffoon!
India is a socialist country and many of its states are run by communists!
Bangladesh by contrast is a capitalist country - after Mujib’s disastrous experiment with socialism.
The stark differences in subsidies, between BD and India, illustrates this perfectly.
The addiction to subsidies is why India cannot sign any meaningful trade deals. Even one with Bangladesh has been stalling for a long time.
INDIA NEEDS HIGH TAXES TO FUND ITS ADDICTION TO SUBSIDIES!!!
Bangladesh doesn’t need high taxes because BD industry is not addicted to subsidies!
Do you pay back debt with GDP or revenue? Why are Bangos so dumb?
New Recruit
This is expected.
Bd fx reserves will continue go down as import bills go up. Export and remittance will go down further. Export going down because bd has only garments to Export which is non essential item during inflation. And remittance will go down thanks to hundi and bd central bank flip flop on fx rates. Ukraine war might last for years meaning high commodity..metal...oil...grain prices in coming years.
But hey dont worry...u have walton...already Exported 11 million dollars..maybe next year it will be 22 million lol..and ola! Probelm solved.
Lol. F off moron.That’s not how sovereign debt service works you buffoon!
E.g. why would current revenue bear any relation to loans that are not payable for another 10 years!!!
Find me one economist who makes a connection between tax revenue and debt!!!
You will have to check with IMF on that, but I would recommend not toIndia is also still borrowing from IMF right until this day ?
Yes, it is the revenue money that comes from the bridge tolls in Taka that will be paid back to the GoB.Do you pay back debt with GDP or revenue? Why are Bangos so dumb?
Only external debt of $256 billion is due this year.Problem is your “private debt” is mainly corporate debt.
These corporations have taken huge loans from state banks.
If external debts are called by the external lender - it will have a massive ripple affect on your state owned banks.
Resulting in the same or worse outcome.
Corporate debt does not have the same effect as sovereign debt. If the sovereign debt is unserviceable, the country will not be able to raise new capital to finance imports as required. Corporate debt on the other hand will lead to insolvency of the corporation only. While the bad loans (issued by state banks) can lead to fiscal problems in the country, it is not something that India is new to. This past decade, there have been quite a few bad loans (from state run banks) and the effects on Indian economy are not the same as what we see in countries that default on external loans (Sri Lanka).
Indian state run banks have already dealt with a number of bad loans this decade. There was a slow down in economic growth rate, but no problems like Sri LankaCorporate debt doesn’t have the same affect as sovereign debt?
No, it has much worse affect!
Lehmen broke the US treasury.
And Northern Rock broke the U.K. treasury.
Neither country has recovered even after a decade!
If you are dumb enough to give a blanket statement that India holds X amount of debt without going into nature and profile of debt, then you sure are dumb enough to accept our foreign reserves can easily cover external debt.Umm... what is the link between external debt and reserves? Whilst i assume your reference to $570bn is govt debt that india carries... the $600bn reserves in its bank are not the governments money. It can not just use it without letting out hyperinflation, without junking your bond market and collapsing your economy.
Your understanding of how things are connected is inaccurate. In terms of indebtedness of countries the following graphic may assist you. Debt to reserves are meaningless... its debt to GDP that counts. Srilanka ran out of reserves because its GDP collapsed due to lack of tourism, very silly agricultural reforms and huge debt.
Lack of reserves is a symptom not the cause of srilankas problem. India is far closer to Srilanka than BD.
View attachment 857852
Indian state run banks have already dealt with a number of bad loans this decade. There was a slow down in economic growth rate, but no problems like Sri Lanka
I don't see anyone trolling SL here, but whateverBoth BD and India are fiscally in good shape.
It’s your Indian trolls who keep trolling SL.