Bigger India
Corporate Debt Overhang Exerts Drag on Investment in India: IMF
According to the report, the recapitalisation plan for major public-sector banks announced in 2017 will help replenish capital buffers and improve the banking sector's ability to support growth.
The corporate debt overhang and associated banking sector credit quality concerns exert a drag on investment in India, the IMF today said in an apparent reference to the PNB scam involving billionaire diamantaire Nirav Modi.
Balance sheet vulnerabilities pose a downside risk to medium-term growth prospects in many emerging market economies, requiring policy action, the International Monetary Fund (IMF) said in its latest annual World Economic Outlook report.