the loans come w specific contractual clauses such as guaranteed time-bound repayments.
Sadly, developing countries (eg India) r unable to borrow in domestic currency, an existential crisis. Rupee bonds exist but not many investors want them
Since the dollar was Rs 45 circa the India Shining era (2004)/this Aug was Rs74.
This is a crap bargain+
n, growing debt never hindered NBFCs frm making loans 2 evry kind of borrower (until now)
B4 becoming a trn $ industry the indegenous NBFC was the village moneylender.
Then, along came global microfinance: loans so smol it embarrassed the developing wrld wot the poor could do w cash they considrd change.
2 make up for this, India must, ideally, export goods/ srvcs 4 sale abroad. In the absence of that, here we r picking up the tab 4 home improvement+🏍️. Yet,
Indians r tied to a long-term outflow of claims on their wealth concentration, gainful only to foreign interests & their local accomplices: TEXTBOOK coloniaIisation.
govt'd hoped Indian black money flush NBFCs given all the liberalization+demonetisation, but it did not:(
Like the majority of the world’s retail borrowers, poor women, too, largely repay their loans.
So what does #NirmalaSitharaman do w illiquid assets? Sees an opportunity to deepen our junk bond mkt+gets PE insider+
2009, Pimco CIO Mohd El-Erian
a decade later, this is seen as an indictment of financial chicanery.
Is it any surprise that the auto sector is flagging after the loans-on-tap party is over? READ
prime.economictimes.indiatimes.com/news/71829055/… via @etprime_com