TNPSC Thervupettagam

Borrowing from Overseas Markets

July 14 , 2019 1990 days 870 0
  • Union Government plans to raise a portion of its gross borrowing from overseas markets.
  • So far, the government of India has only issued bonds in the domestic market.
  • It now plans to issue overseas sovereign bonds.
  • Government issues bonds with the promise to pay periodic interest payments and also repay the entire face value of the bond on the maturity date.
Concerns
  • Overseas borrowing will lead to a stronger rupee.
  • A stronger rupee would encourage imports at a time when the government is trying to curb them.

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