India's external debt baloons to $513 billion

[Nilgiri]

Credit rating not improving? We only started getting credit rating in 2016, what are you talking about?

LOL you seriously want to persist here.

a) Your own argument (just running with it for the moment), "We only got credit rating in 2016" by itself speaks volumes...so ask yourself if you didn't have any credit rating, why would you then compare with countries that do? Its like basket case wondering why no one is interested in building a Boeing Aircraft Complex there.....but bravely saying it has lower debt as result.....and no one else really caring

b) The argument is BS anyway, you have plenty of credit rating history (definitely past 2016), never good, always flat:

Foreign:

https://countryeconomy.com/ratings/bangladesh

Even domestically it has been in operation for waaay longer than 2016:

http://dspace.bracu.ac.bd/bitstream/handle/10361/3720/09104055.pdf?sequence=1

And what does credit rating have to do with the fact that India has way more external debt to forex ratio than BD?

Yes what does debt level have to do with credit rating? Seriously this is a question you are asking (again)?

Then bringing in forex again (after I specifically addressed what the Mx velocities are in the last post)....facepalm. I seriously hope for your sake you are still a teenager. There is still time for you hopefully if that is the case to actually LISTEN and UNDERSTAND, rather than ask the same question again like a dullard after it was answered.

We only spend 15% of our budget on debt servicing even though our government spending to GDP is only 13% while India spends over 20% on debt servicing.

Again its due to lack of supply of debt to your govt to take on, because it fares so poorly and non - credibly (maybe non credit-ably lol).

BD doesn't have debt problem to begin with that it would need to reduce the debt.

The effects of the current debt ramp (that 50% increase I was referencing in just 4 years time) along with the deterioration in BD banking sector (can ask @MBI Munshi and @Tanveer666 among others) will take its effect only in later years (debt ROI cycles take time to work through, refer to current NPA situation in India). Tell me do you know how much the split is for BD case between short term and long term debt in the current ramp?...and compare it to the pre -2012 composition? Then factor in the stagnant and even worsening BD financial sector (credit rating, market cap, bond market reform)...you are going to have a SHTF situation at the current ramp.

Go knock yourself out:

http://datatopics.worldbank.org/debt/ids/country/BGD

You are the one with the need of debt reduction not BD. We have more things to worry about than non existent debt crisis.

As you have clearly shown, you know nothing on the subject. Simply repeating things on feelz and some cursory title reading on the matter will not cut it I am afraid.

 

[Pakistani Aircraft]

Mostly from World Bank and Asian Development Bank to initiate big developmental projects, not to maintain our fx reserves. Secondly major chunk of our foreign debts represent the bond holdings by FIIs issued by Indian companies.

Okay. Keep telling yourself that. Indian debt all good and Pakistani debt all bad.

 

[AyanRay]

Okay. Keep telling yourself that. Indian debt all good and Pakistani debt all bad.

Prove me wrong

 

[Novice09]

Okay. Keep telling yourself that. Indian debt all good and Pakistani debt all bad.

Well every country have debts... but the problem with Pakistan is their politicians and the level of corruption...
You gave free transit to US during Afghan war... while you could have earned billion of dollars by imposing meagre fees on transit of goods...

IMO Pakistan's problem is the corrupt officials and elite.. who always keep their benefits ahead of nation... otherwise this nation has huge potential... Pakistan geographical location is awesome... it could be a bridge between energy producing and consuming nations...

 

[surya kiran]

@Nilgiri wait for them to realise how much of the loans from 'benevolent neighbour' is at soft rates and how much is at commercial credit. It is in our interest to ensure that these chaps do not fall into the debt trap.

 

[Tanveer666]

@Nilgiri

I'm no expert in this matter but from what i hear from the newspaper, apparently the baking sector is facing a liquidity crisis due to fraudulent loans. There have been plenty of loan "scandals" during the last couple of years, so people have lost faith in the banks in general, which kinda exacerbated the process.

But i'm curious, how does the"scandals" on our local market affect our foreign debt or credit rating. I mean if the government duly pay's back shouldn't it improve our credit rating (regardless of the "fracas" in the local market)?

Again its due to lack of supply of debt to your govt to take on, because it fares so poorly and non - credibly (maybe non credit-ably lol)

Also, how are we in a debt trap if no one wants to lend us money in the first place?

again,i'm no expert in these matter so if i got something wrong, my apologies .

 

[Tanveer666]

Let me enlighten some ignorant Pakistanis & many other fools - India can clear 2 times the external debt, without even touching our forex reserves.

I repeat India can clear 1000 bln or 1 trillion debt one shot, if required & without even touching our 424 Billion $ reserves or borrowing from anywhere.

So worry about saving your country. India can buy more than 10 Pakistan & 10 Bangladesh simultaneously, with hard cash today, if we want.

Believe it or not - This is my bold Golden words in Gold

How, if i may ask?

 

[bête noire]

LOL you seriously want to persist here.

a) Your own argument (just running with it for the moment), "We only got credit rating in 2016" by itself speaks volumes...so ask yourself if you didn't have any credit rating, why would you then compare with countries that do? Its like basket case wondering why no one is interested in building a Boeing Aircraft Complex there.....but bravely saying it has lower debt as result.....and no one else really caring

If you looked at my first post, it was in response to you bringing up everyone. I didn't bring up India, it was in response to yours. Maybe try to heed your own advice next time.

b) The argument is BS anyway, you have plenty of credit rating history (definitely past 2016), never good, always flat:

Foreign:

https://countryeconomy.com/ratings/bangladesh

Even domestically it has been in operation for waaay longer than 2016:

http://dspace.bracu.ac.bd/bitstream/handle/10361/3720/09104055.pdf?sequence=1



Yes what does debt level have to do with credit rating? Seriously this is a question you are asking (again)?

Then bringing in forex again (after I specifically addressed what the Mx velocities are in the last post)....facepalm. I seriously hope for your sake you are still a teenager. There is still time for you hopefully if that is the case to actually LISTEN and UNDERSTAND, rather than ask the same question again like a dullard after it was answered.



Again its due to lack of supply of debt to your govt to take on, because it fares so poorly and non - credibly (maybe non credit-ably lol).



The effects of the current debt ramp (that 50% increase I was referencing in just 4 years time) along with the deterioration in BD banking sector (can ask @MBI Munshi and @Tanveer666 among others) will take its effect only in later years (debt ROI cycles take time to work through, refer to current NPA situation in India). Tell me do you know how much the split is for BD case between short term and long term debt in the current ramp?...and compare it to the pre -2012 composition? Then factor in the stagnant and even worsening BD financial sector (credit rating, market cap, bond market reform)...you are going to have a SHTF situation at the current ramp.

Go knock yourself out:

http://datatopics.worldbank.org/debt/ids/country/BGD



As you have clearly shown, you know nothing on the subject. Simply repeating things on feelz and some cursory title reading on the matter will not cut it I am afraid.

You brought the issue up. You were wrong on what you said, now pivot to everything that isn't your original assertion. BD still has low debt, both external AND total debt. Our total debt to GDP ratio is like half of India's. We don't need to worry about the debt as we can easily cope and service the debts when we need to.

Keep ranting with walls of texts. Unlike you, not everyone is unemployed and frustrated to spend so much time ranting and venting out frustration online.

 

[Nalini]

How, if i may ask?

For Answer - Kindly go to page 4 & read Post No. 47

 

[Tanveer666]

For Answer - Kindly go to page 4 & read Post No. 47

all the golds, arnaments,cash and fixed deposits stashed in the temples,are those private property or governemt property? I'm curious. I mean who owns them?

 

[Nalini]

all the golds, arnaments,cash and fixed deposits stashed in the temples,are those private property or governemt property? I'm curious. I mean who owns them?

It is all owned by the Temple authorities & trustee. Some family temples are owned by it's families like the Anantha Padmanabha temple which is under the control of the Royal family of Travancore, whose ancestors owned this temple in ancient times & one king surrendered all his wealth & kingdom to Lord Anantha Padmanabha to serve God as his servant. That's the ancient wealth in that temple

Gov.t is collecting wealth tax on these funds, but Gov.t cannot claim it, because it's not Gov.t's earnings. It's the public donating to the Temples for their devotion of God. Only the trustees, temple authorities & the public (Hindus) can decide what to do with these funds.

There is a ritual called Deva prasnam in the south, which is performed to know what does the God wish for any critical decisions. It's an astrological ritual carried out to interpret the will of the gods. Only that can decide the fate of these funds too according to me.

https://en.wikipedia.org/wiki/Ashtamangala_prasnam

Gov.t can only request to use it for the country's development. Devotees come & donate money, gold, silver, diamond, land to the temple of their choice. Around 400-500 Million $ is the collection of Tirumala Tirupathi & around 150-200 Million $ for Anantha Padmanabha temple every year. The recent estimate of only Vault A of Anantha Padmnabha Swamy temple by Gov.t & international sources is 22 Billion $. There are several temples across India, whose yearly earnings just through donations & interest on their wealth is between 300-500 Million $ every year.

 

[Nilgiri]

@Nilgiri

I'm no expert in this matter but from what i hear from the newspaper, apparently the baking sector is facing a liquidity crisis due to fraudulent loans. There have been plenty of loan "scandals" during the last couple of years, so people have lost faith in the banks in general, which kinda exacerbated the process.

But i'm curious, how does the"scandals" on our local market affect our foreign debt or credit rating. I mean if the government duly pay's back shouldn't it improve our credit rating (regardless of the "fracas" in the local market)?



Also, how are we in a debt trap if no one wants to lend us money in the first place?

again,i'm no expert in these matter so if i got something wrong, my apologies .

Yup BD is in severe need of a banking reform. It has been left completely untouched a long time and the dirt has accumulated.

I'm not saying you are in a serious debt trap right now, rather the ramp (speed of accumulation) you have going on now (with no finance sector/credit rating improvement) will lead to a potential one (there are many levels and tiers of debt trap).

Some do want to lend you money beyond the market equilibirum, esp those that a) have surplus liquidity b) can pretty brutally enforce payback in times of later default....refer to whats going on in Sri Lanka and Pakistan on various large infra projects funded by a large surplus liquid "benefactor".

This is why I always say its best to hedge against everyone (credit supplier) by improving your fundamentals organically and sustainably so the market equilibrium shifts in your favour....rather than becoming dependent on just 1 or 2 (non-market influenced but cash rich) creditors (who will turn into loansharks if you dont improve yourself anyway).

@Desert Fox

 

[Nilgiri]

If you looked at my first post, it was in response to you bringing up everyone. I didn't bring up India, it was in response to yours. Maybe try to heed your own advice next time.

Hey dumb dumb, it was an article about South Asian region in general, not BD specifically (which is what you made it out to be in your nnnnnnnnghhhhh over-reaction)....and I was replying to...you guessed it, NOT YOU.....but someone saying India is not reducing its debt level....when the exact OPPOSITE is what is happening right now and the claim is far more true for rest of the region.

Sorry if you didn't know enough Economics 101 to keep up in the end. Get more educated first and come back (and learn how to present an argument well) if you still want to talk about it.

You brought the issue up. You were wrong on what you said, now pivot to everything that isn't your original assertion. BD still has low debt, both external AND total debt. Our total debt to GDP ratio is like half of India's. We don't need to worry about the debt as we can easily cope and service the debts when we need to.

OK and the genius loudly brays for the 3rd time rather than actually trying to discuss. Like I said boy, hope you are still in your teens, there is at least hope for you in that case.

Maybe India should be extremely happy that its Debt/GDP ratio is like 4 times lower than Japan's by your super STRONK "logic" "Service the debts when you need to.....again directly showing you didnt even bother to look up the IDBS matrix and look at the shift in what kind of debt BD is taking on (and from who) without:
a) any banking reform
b) no expansion of market cap (far more relevant to Mx in play compared to forex, which you still stupidly have not informed yourself on, neither are you likely to by the way your feelz that repeating the same thing 10 times makes it correct)
c) no bond market reform
d) no credit rating improvement (linked to the other 3)

Just so dumb you are....hopefully not a permanent condition.

Keep ranting with walls of texts. Unlike you, not everyone is unemployed and frustrated to spend so much time ranting and venting out frustration online.

Lose the argument, part with some ad hominem and strawman. BD STRONK.

 

[UKBengali]

OK and the genius loudly brays for the 3rd time rather than actually trying to discuss. Like I said boy, hope you are still in your teens, there is at least hope for you in that case.

Maybe India should be extremely happy that its Debt/GDP ratio is like 4 times lower than Japan's by your super STRONK "logic" "Service the debts when you need to.....again directly showing you didnt even bother to look up the IDBS matrix and look at the shift in what kind of debt BD is taking on (and from who) without:
a) any banking reform
b) no expansion of market cap (far more relevant to Mx in play compared to forex, which you still stupidly have not informed yourself on, neither are you likely to by the way your feelz that repeating the same thing 10 times makes it correct)
c) no bond market reform
d) no credit rating improvement (linked to the other 3)

Just so dumb you are....hopefully not a permanent condition.

You are the stupid one here dude.

Comparing India with Japan?
India is a 3rd world craphole after 70 years of independence, while Japan is a super-advanced country that is the world's largest creditor nation to boot - almost twice that of China.
Want to know just how much Japan has invested around the world? More than 1 trillion US dollars.


As for BD, you do know that BD governments are ultra-conservative and will not take out high-interest loans like India does? There is ample scope for BD to pay a larger chunk of it's budget in servicing debt(could double it) but there is a different mentality in BD when compared to India.

No amount of nerdy walls of text is going to change the fact that you are unemployed and hence have the time to post so much and in so much detail.

 

[Nilgiri]

Comparing India with Japan?

The point is thats what your compatriot was doing comparing BD to India regarding debt levels with vastly different credit rating, bond market size/maturity and sheer market cap available....not to mention SDDS vs GDDS

Thanks for proving my point.

As for BD, you do know that BD governments are ultra-conservative and will not take out high-interest loans like India does?

a) Again nothing on offer in first place (junk grade credit = yeah no thanks from market), its not a demand-decision from BD....its a supply decision from everyone else. "Ultra-conservative" ....that is like beggar alcoholic saying he is sober because all the bars cut him off because they know he is not good for any tab he runs up....and he gets hooked on the one hooch provider in the boonies as a result. So much more like "ultra-corrupt/useless".

b) The short term loan proliferation in recent years as % of total loans certain shows BD has a massive underlying demand for this, despite the market cutting them off..... (i.e desperate for that crack, no matter how bad it is for it in long run)...and only one supplier cares to meet some of it (given liquidity saturation domestically)....who will loanshark it back like they do with the rest of the world. Why not start the bordello as early as you can after all....well before you turn the gals into long term crack-whores.

There is ample scope for BD to pay a larger chunk of it's budget in servicing debt(could double it) but there is a different mentality in BD when compared to India.

Again a GDDS LDC comparing itself to SDDS country is pretty amusing. Just remember where your country ranks in corruption and credibility. Always near rank bottom, nowhere close to halfway mark percentile like India. It shows in your junk grade credit rating in this particular topic.

No amount of nerdy walls of text is going to change the fact that you are unemployed and hence have the time to post so much and in so much detail.

No amount of you breathing oxygen changes that you are stealing it....like all other pole vaulting, 33% diabetes afflicted, 70% poverty rate, mediterranean sea boat cretins.

You hate the reality, thus have to resort to ad hominem. Its a 3 million holohoax mentality from the onset.

No worries, when I feel like it, I will post picture evidence of what I do, what I own and who I am....first have to build up the BD ego and tears here to make it worth crushing....nowhere near enough yet.