Posts Tagged ‘short term debt’

India’s Total External Debt Touched $243 Billion

India’s Total External Debt Touched $243 Billion

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India’s total external debt rose by 8.1% to $242.8 billion at the end of September 2009 from $224.6 billion at March-end 2009.

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The long term debt increased by 10.6% to $200.4 billion, while short term debt declined by 2.3% to $42.4 billion.

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Most of the increase in the debt ($8.3 billion or 45.6%) is due to depreciation of dollar against major global currencies, out of total increase of $18.2 billion, according to a finance ministry statement.

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The total external financial assets increased by $21 billion to $378.6 billion at September end 2009 over the previous quarter.

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Total external financial liabilities increased significantly by $32.7 billion over the previous quarter and stood at $476.4 billion at Septemberend 2009.

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Direct investment and Portfolio investment in India increased by $11 billion and $10.2 billion respectively over the previous quarter.

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Long-term debt at $ 220.4 billion accounted for 82.5% of the total debt.

As a positive development, India’s short term debt, which had increased sharply between March 2005 and March 2008, went down by $985 million to $42.4 billion at September-end.

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The decline was seen in all the components of short-term debt except trade related credits for period above six months and up to one year

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Short-term credit, that is a credit of less than 180 days, short-term liabilities of banking system and investment of foreign central banks and other global financial institutions in government’s treasury bills is considered bad for economy.

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