Short-Debt Addiction Is Fueling Risks in India
- Indian firms have doubled proportion of short bonds since 2015
- OECD flagged risks from short debt globally as rates rise
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As a global economic organization warns of emerging markets’ growing addiction to short-term debt, data show that Indian firms have rapidly loaded up on such borrowings.
Indian non-financial companies relied on bonds maturing within three years for 44 percent of their overall issuance in 2018, double the proportion in 2015, according to data compiled by Bloomberg. The shift comes at a time when Indian banks, saddled with about $190 billion of soured loans, have grown more cautious on lending.