{"id":29919,"date":"2018-10-26T13:04:41","date_gmt":"2018-10-26T07:34:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=29919"},"modified":"2018-10-26T13:04:41","modified_gmt":"2018-10-26T07:34:41","slug":"corporate-debt-a-drag-on-investment","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/corporate-debt-a-drag-on-investment\/","title":{"rendered":"\u2018Corporate debt, a drag on investment\u2019"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/corporate-debt-a-drag-on-investment\/article23579019.ece\"><strong>\u2018Corporate debt, a drag on investment\u2019<\/strong><\/a><\/p>\n<p><strong>Context<\/strong><\/p>\n<p>Policy action needed to tackle balance sheet vulnerabilities that pose a risk: IMF<\/p>\n<p><strong>What has happened?<\/strong><\/p>\n<p>The corporate debt overhang and associated banking sector credit quality concerns exert a drag on investment in India, the International Monetary Fund (IMF) said on Tuesday, in an apparent reference to the PNB scam involving diamantaire Nirav ModiR<strong>\u00a0<\/strong><\/p>\n<p><strong>Recommendations<\/strong><\/p>\n<ul>\n<li>Balance sheet vulnerabilities pose a downside risk to medium-term growth prospects in many emerging market economies, requiring policy action<\/li>\n<li>Recapitalization should be part of a broader package of financial reforms to improve the governance of public sector banks, and banks\u2019 debt recovery mechanisms should be further enhanced<strong style=\"font-size: 1rem;\">\u00a0<\/strong><\/li>\n<\/ul>\n<p><strong>Mitigating rollover risk<\/strong><\/p>\n<p>Moreover, given that sudden repricing of term premiums remains a distinct possibility and that portfolio shifts could occur, it is important to mitigate rollover risk by avoiding excessive reliance on short-term borrowing.<\/p>\n<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/bharat-22-etf-may-eye-rs-10000-cr\/article23579013.ece\"><strong>Bharat-22 ETF may eye Rs. 10,000 cr.<\/strong><\/a><strong>(The Hindu)<\/strong><\/p>\n<p>The Finance Ministry may come out with a Rs. 10,000-crore follow-on fund offer of the Bharat-22 exchange traded fund (ETF) as it looks to dilute stake in Coal India to meet the minimum public holding norm<\/p>\n<p><span style=\"font-size: 1rem;\">The Ministry is keen to take the ETF route to sell off government shares held through SUUTI in private firms \u2014 ITC, Axis Bank and L&amp;T,<\/span><\/p>\n<ul>\n<li>The government, in November, introduced Bharat-22 ETF comprising shares of 22 firms, including PSUs, public sector banks, ITC, Axis Bank and L&amp;T<\/li>\n<li>The fund had garnered bids to the tune of Rs. 32,000 crore, although the government retained only Rs. 14,500 crore<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Corporate debt, a drag on investment\u2019 Context Policy action needed to tackle balance sheet vulnerabilities that pose a risk: IMF What has happened? The corporate debt overhang and associated banking sector credit quality concerns exert a drag on investment in India, the International Monetary Fund (IMF) said on Tuesday, in an apparent reference to the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/corporate-debt-a-drag-on-investment\/\">Continue reading <span class=\"screen-reader-text\">\u2018Corporate debt, a drag on investment\u2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-29919","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704868967},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/29919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=29919"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/29919\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=29919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=29919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=29919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}