CAD inches up to 2.1% at $57.2 bn in FY19, but more than halves in Q4; net services receipts increase 5.8% to $21.3 bn
Overall trade performance was the prime influencer for both the contraction in CAD for the March quarter as well as a widening for the full year.
Yet curiously Jet Airways says the default it has committed on meeting its tryst with the ECB was precisely working capital related.
India Inc's external commercial borrowings (ECBs) fell by 45 percent to $2.42 billion in January 2019 as compared to the year-ago period, data from RBI has showed
The Reserve Bank of India (RBI) on Thursday announced a cap on the outstanding stock of external commercial borrowings (ECB) at 6.5 percent of GDP at current market prices.
RBI eases hedging norms for external commercial borrowings by reducing provision to 70% from current 100%
The relaxed norms will apply to the ECBs with a maturity period between 3 and 5 years, the RBI said in a notification
The relaxations in the ECB norms follow other moves by the RBI, including last week's permission to banks to use credit enhancement to help NBFCs raise medium to long-term funds.
Masala bonds shift the exchange rate risks onto the lenders, with all other features of ECB staying intact.
The overall ECB ceiling for the entire civil aviation sector would be $1 billion and the maximum permissible ECB that can be availed by an individual airline company will be $300 million, it said.
The RBI further said for lending in rupees, the lender would have to follow certain conditions, including currency swaps with authorised banks.<br />