Debt Crisis in India-Will Chinese Banks Bail Out More Indian Companies?

[lamlap]

I think India will be the "Greece" of South Asia in the near future.

India has Huge Trade deficit and debt burden, the future is gloomy

 

[Kylin]

May be bcz salary for Indian staff is quite high.

good one

I would say nah, too risky given the corruptions and the nice reputation indian business men have established

there is no good would came out of it, like they are gonna appreciated the help

 

[prabhakar]

our defence expenditure do not exceed our defence budget... most of the times army returns the unspent money back to finance ministry.

 

[anonymus]

The source for the data is the Reserve Bank of India.

Debt % of Total GDP


Portugal = 92%
-------------------
India = 78%
-------------------
France = 67%
Spain = 60%
UK = 47%


Investors cue up Portugal as the next Greece | Reuters
Portuguese Borrowing Costs Hit New Record - WSJ.com


http://img4.bbs.**********/uploadfiles/images/2012/01/30/0130084508538.JPG

List of countries by public debt - Wikipedia, the free encyclopedia

From Davidson[/QUOTE]

Dear Riaz Haq,Trollson,Lamelamp and chinese lizard,Since you people are in a habit of creating duplicate threads on same news,I would again post data that i have posted on other threads.


The Consolidated debt(Centre + State) level of India was at a concerning level of 78.8% of GDP at the end of March 2010(13th Finance commission),the basis on which the report concerning this thread was written.

However for determining vulnerability of Public Debt following criteria's are to be taken into account

1.Composition

2.Refinancing requirement

3.Investor Base

The attributes of central public Debt,which place it in a distinct class,making it less vulnerable are

1.The share of Sovereign public debt in total public debt was 10.8% at the end-september 2010.The bulk of Debt was from multilateral and bilateral and FII investment in Government securities accounted for less than 1% of total public debt.

2.India does not access international capital market as a sovereign entity thus refinancing risk due to foreign commercial investors are absent.

3.Domestic Debt accounts for 89.2% of total government sovereign debt.Out of this 11.5% is in form of non-marketable categories like NSS.The remaining 77.7% are marketable securities with 73.2% in date securities(long term) and 4.3% in T-Bills.

4.In dated securities banks have 51.9%,Insurance companies(mainly LIC) 22%.Given the high SLR ratio requirement for banks and the fact that majority of Banks and Insurance companies remains in Public sector,refinancing risk is minimal at best.

5.Average maturity of GoI bonds is 10 yrs,making it less vulnerable to refinancing risk.

Thus Indian debt is much more secure than Eurodebt.

for statistics:http://indiabudget.nic.in/es2010-11/estat1.pdf

 

[riju78]

The source for the data is the Reserve Bank of India.

It very well be the case... but i have seen his threads here and he never seems to worry abt pakistan's economy.. when ur own *** is on fire u should not be worrying abt ur neighbours child playing with a matchstick

 

[northeast]

India's economy is based upon debt.
soon or later ，it will collapse like argentine and greece .
It's just a matter of time

 

[lamlap]

The Consolidated debt(Centre + State) level of India was at a concerning level of 78.8% of GDP at the end of March 2010(13th Finance commission),the basis on which the report concerning this thread was written.

Debt level of India over 90% in Jan, 2012, I estimate.

and also the India sovereign bond rating is BBB-, one notch ave BB- JUNK LEVEL (Junk level = Greece or Portugal ratings), take care India friends .

 

[lamlap]

India's economy is based upon debt.
soon or later ，it will collapse like argentine and greece .
It's just a matter of time

The Consolidated debt(Centre + State) level of India was at a concerning level of 78.8% of GDP at the end of March 2010(13th Finance commission),the basis on which the report concerning this thread was written.

Debt level of India over 90% in Jan, 2012, I estimate.

 

[RiazHaq]

From Davidson

Dear Riaz Haq,Trollson,Lamelamp and chinese lizard,Since you people are in a habit of creating duplicate threads on same news,I would again post data that i have posted on other threads.


The Consolidated debt(Centre + State) level of India was at a concerning level of 78.8% of GDP at the end of March 2010(13th Finance commission),the basis on which the report concerning this thread was written.

However for determining vulnerability of Public Debt following criteria's are to be taken into account

1.Composition

2.Refinancing requirement

3.Investor Base

The attributes of central public Debt,which place it in a distinct class,making it less vulnerable are

1.The share of Sovereign public debt in total public debt was 10.8% at the end-september 2010.The bulk of Debt was from multilateral and bilateral and FII investment in Government securities accounted for less than 1% of total public debt.

2.India does not access international capital market as a sovereign entity thus refinancing risk due to foreign commercial investors are absent.

3.Domestic Debt accounts for 89.2% of total government sovereign debt.Out of this 11.5% is in form of non-marketable categories like NSS.The remaining 77.7% are marketable securities with 73.2% in date securities(long term) and 4.3% in T-Bills.

4.In dated securities banks have 51.9%,Insurance companies(mainly LIC) 22%.Given the high SLR ratio requirement for banks and the fact that majority of Banks and Insurance companies remains in Public sector,refinancing risk is minimal at best.

5.Average maturity of GoI bonds is 10 yrs,making it less vulnerable to refinancing risk.

Thus Indian debt is much more secure than Eurodebt.

for statistics:http://indiabudget.nic.in/es2010-11/estat1.pdf[/QUOTE]

Indian Rupees can't buy any imports. The Arabs won't sell oil for any currency other than US $.

The Americans can and do simply print more dollars to buy stuff, and the ECB prints Euros to deal with the European debt crisis.

Indian govt and Indian companies still need US dollars. And Indians can't just print them. They have to rely on the inflows of dollars and Euros.

That's where the problem is.

Unlike China, India does not have trillions of dollars in reserves from its huge trade surpluses.

Haq's Musings: Soaring Chinese Imports and Twin Deficits Worry India

 

[nalandapride]

Debt level of India over 90% in Jan, 2012, I estimate.

and also the India sovereign bond rating is BBB-, one notch ave BB- JUNK LEVEL (Junk level = Greece or Portugal ratings), take care India friends .

Highly illiterate guy Junk level is CCC, Greece has CCC rating. Below BBB- comes BB+, BB, BB-, B+, B, B- then comes CCC junk level after 6 steps.

Haven't expected this from high IQ Chinese.

 

[RiazHaq]

Dear Riaz Haq,Trollson,Lamelamp and chinese lizard,Since you people are in a habit of creating duplicate threads on same news,I would again post data that i have posted on other threads.


The Consolidated debt(Centre + State) level of India was at a concerning level of 78.8% of GDP at the end of March 2010(13th Finance commission),the basis on which the report concerning this thread was written.

However for determining vulnerability of Public Debt following criteria's are to be taken into account

1.Composition

2.Refinancing requirement

3.Investor Base

The attributes of central public Debt,which place it in a distinct class,making it less vulnerable are

1.The share of Sovereign public debt in total public debt was 10.8% at the end-september 2010.The bulk of Debt was from multilateral and bilateral and FII investment in Government securities accounted for less than 1% of total public debt.

2.India does not access international capital market as a sovereign entity thus refinancing risk due to foreign commercial investors are absent.

3.Domestic Debt accounts for 89.2% of total government sovereign debt.Out of this 11.5% is in form of non-marketable categories like NSS.The remaining 77.7% are marketable securities with 73.2% in date securities(long term) and 4.3% in T-Bills.

4.In dated securities banks have 51.9%,Insurance companies(mainly LIC) 22%.Given the high SLR ratio requirement for banks and the fact that majority of Banks and Insurance companies remains in Public sector,refinancing risk is minimal at best.

5.Average maturity of GoI bonds is 10 yrs,making it less vulnerable to refinancing risk.

Thus Indian debt is much more secure than Eurodebt.

for statistics:http://indiabudget.nic.in/es2010-11/estat1.pdf

Indian Rupees can't buy any imports. The Arabs won't sell oil for any currency other than US $.

The Americans can and do simply print more dollars to buy stuff, and the ECB prints Euros to deal with the European debt crisis.

Indian govt and Indian companies still need US dollars. And Indians can't just print them. They have to rely on the inflows of dollars and Euros.

That's where the problem is.

Unlike China, India does not have trillions of dollars in reserves from China-like huge trade surpluses.

Haq's Musings: Soaring Chinese Imports and Twin Deficits Worry India

 

[lamlap]

Highly illiterate guy Junk level is CCC, Greece has CCC rating. Below BBB- comes BB+, BB, BB-, B+, B, B- then comes CCC junk level after 6 steps.

Haven't expected this from high IQ Chinese.

Rated BB- (junk) or below

News Headlines

 

[lamlap]

Junk bonds are typically rated at 'BB'/'Ba' or less.



India sovereign bond rating is BBB-, one notch above BB- JUNK LEVEL (Junk level = Greece or Portugal ratings), take care India friends .

Junk Bonds: Everything You Need To Know

http://img4.bbs.**********/uploadfiles/images/2012/01/31/013115252870.JPG

 

[nalandapride]

Junk bonds are typically rated at 'BB'/'Ba' or less.



Junk Bonds: Everything You Need To Know

Tell to to Mr. Riaz Haq Pakistan has B- junk rating.

And Greece has CCC rating right now.

 

[lamlap]

India sovereign bond rating is BBB-, one notch above BB JUNK LEVEL (Junk level = Greece or Portugal ratings), take care India friends .

Junk Bonds: Everything You Need To Know

http://img4.bbs.**********/uploadfiles/images/2012/01/31/013115252870.JPG