Rajan says corporate debt levels not 'systemic' risk
WASHINGTON (Reuters) - Indian companies with high foreign currency debt could face difficulties but do not pose system-wide risks to the country's financial sector, Reserve bank of India governor Raghuram Rajan said on Thursday.
"Yes, there are corporations that have external debt. There may be some that get into some difficulty and they will have to renegotiate," said Rajan at a Bretton Woods Committee conference in Washington.
"But I don't see that as a systemic issue," he said, adding that a "very small fraction" of the debt is held by Indian banks. (Reporting By Steven C. Johnson; Editing by Andrea Ricci)
- Tweet this
- Share this
- Digg this
- UPDATE 2-Obamacare agency relies on manual back-ups as enrollment rises
- Supreme Court turns the clock back with gay sex ban
- UPDATE 2-Pilots of Asiana crash knew speed was low -documents
- China bitcoin arbitrage ends as traders work around capital controls
- Uruguay's move to legalise marijuana breaks international treaty-INCB