India acts to avert liquidity crunch

Nov 18, 2008

Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.

India’s central bank took emergency measures at the weekend to avert a growing liquidity crunch affecting the country’s estimated $43.7bn of outstanding trade finance.

Blocked trade credit is threatening to bring productive sectors of the economy to a standstill, particularly small and medium-sized businesses that are unable to fall back on large balance sheets.

Citi has singled out India’s $43.7bn (€34.7bn, £30bn) of trade credit as a particular “problem area”. The Reserve Bank of India is also increasingly concerned about the country’s outstanding short-term corporate sector foreign debt of $82bn.

The RBI on Saturday night more than doubled the funds it makes available for banks to refinance export credit at favourable interest rates to Rs220bn ($4.5bn, €3.8bn, £3bn).

It also extended the export credit repayment window for exporters to nine months from six months.

“There are indications that the global slowdown is deepening with a larger than originally expected impact on the domestic economy,” the RBI said.

The move came as the Asian Development Bank on Sunday appealed to Asian banks to unfreeze credit to customers, saying financial institutions had overreacted to the effects of the global financial crisis in the region

via FT.com / Asia-Pacific / India – India acts to avert liquidity crunch

GD Star Rating
loading...

Sphere: Related Content

Socialize/Share on Linked In

Related Posts frm Wordpress

July 1, 2009 -- StanChart and ANZ poised to split RBS Asian assets * FT.com Banks
June 13, 2009 -- More to the Banking saga | PE enters fray
June 11, 2009 -- A chastised Citi with a $58 billion Obama Stake | WSJ.com
June 11, 2009 -- Big Banks Approaching the TARP Exit Ramp – DealBook Blog, NYTimes.com
June 10, 2009 -- Citigroup completes agreement with US government
June 9, 2009 -- Recovery Scenarios: Will It Be Too Hot, Too Cold or Just Right? – Real Time Economics – WSJ
June 8, 2009 -- A sweet summary of everything else in Infrastructure | ibef.org
June 8, 2009 -- Reliance ADA – Life Insurance worth 12000 crore
February 21, 2009 -- Ken Lewis applies for the Treasury job?
January 2, 2009 -- Bank rate cut Saturday – update

Related Posts

Related Websites

Category: Banking, CRR, Financial Markets, India, Investments

Tagged: Amitonomics, Banking, Corporate, Corporate Bank, Credit Crisis, India, Investments, Liquidity

March 2010
M	T	W	T	F	S	S
« Feb
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

We are on mobile , facebook, twitter and your favorite blog feed / Directory socialone.mobi | newadvantages.mobi | zyaada.mobi twitterone.com | zyaada.us | zyaada.info | socialone.info We are graded 90/100 by grader.com Stick around, grab the RSS feed.. let us know your new app ideas

Corporate Credit (Credit card and line of credit)? says:

November 18, 2008 at 2:34 pm

[...] India acts to avert liquidity crunch « An investor’s Blog [...]

8 says:

November 19, 2008 at 4:41 pm

Helpful Financial Services
Blogs Here
…

Nov. 12 (Bloomberg) &# [...]…

How do I establish and get corporate credit? says:

November 21, 2008 at 2:32 pm

How does a Corporation obtain credit? says:

November 24, 2008 at 5:02 am

How/where can I obtain corporate credit? says:

November 29, 2008 at 2:12 am

Which company is best to build corporate credit ? says:

November 30, 2008 at 6:12 am

building corporate credit? says:

December 3, 2008 at 10:11 am

[...] India acts to avert liquidity crunch « An investor’s Blog Share and Enjoy: [...]

does corporate credit have lower interst than mortgage loans? says:

December 5, 2008 at 4:58 pm

Corporate Credit vs Personal Credit? says:

December 7, 2008 at 5:13 pm

help me build corporate credit or my biz? says:

December 10, 2008 at 11:56 am

Moneywise says:

December 24, 2009 at 7:56 pm

Hi, possibly our posting is off topic but anyways, I’ve gone surfing around your website and it looks extremely elegant. It is obvious that you know your subject and you are passionate about it. I

The Banking and Strategy Initiative