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India’s Government-Owned Firms Pay A Hefty Price For Increased Borrowings
Government run firms have seen funding costs rise due to increased market borrowings.
27 May 2019, 02:16 PM IST ![NDTV Profit](/icons/feather-without-circle.svg)
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![A stack of Indian one-hundred rupee banknotes are arranged for a photograph at a branch of the HDFC Bank Ltd. in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)](https://media.assettype.com/bloombergquint%2F2017-03%2Fc51c8296-04d8-420e-87eb-a4fb40758db0%2Fm1286163.jpg?rect=0%2C294%2C4000%2C2250&auto=format%2Ccompress&w=200)
A stack of Indian one-hundred rupee banknotes are arranged for a photograph at a branch of the HDFC Bank Ltd. in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)
India’s government owned agencies and companies are paying a steep price for their borrowings, despite an implicit sovereign backing and low probability of default.While borrowings costs for all Indian companies have risen due to tight liquidity conditions and risk-aversion in the credit markets, the spread, or the additional cost over sovereign bond yields paid by government firms, has also widened, shows data analysed by BloombergQ...
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