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Economy: Sovereign Bonds, Borrowing, Policy, Rationale

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Headline : The name is dollar bond Editorial 3nd Aug’19 IndianExpress

Details :

 

Sovereign Bonds:

The difference is that this is offshore borrowing from foreign parties:

 

Questions raised:

 

Rationale given by the government:

Other benefits

Signalling the opening up of economy:

Costs of borrowing:

Reduced yields for private sector:

Ratings upgrade:

 

Concerns over the move

Indian economy will be exposed to global economic sentinment:

Needless move:

Could end up as a shift in location of borrowing foreign funds:

Government may end up overborrowing:

 

Conclusion:

 

Importance:

GS Paper III: Economy

 

Section : 
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