India’s Second-Most Industrialized State Favors Debt Recast
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Tamil Nadu, India’s second largest state by output, is favoring a debt recast to ease its financial burden at a time when the pandemic is forcing states to borrow even more to fund widening budget deficits.
“We need a one-time restructuring of our debt because the interest burden has become so high,” Palanivel Thiaga Rajan said in an interview to Bloomberg TV Friday. “My concern is about fixing the structural problem so that we don’t have this vicious cycle.”