Almost $200 billion worth of debt are coming up for repayment between June 2017 and June 2018, data from RBI reveals. The entire external debt is currently at $485.8 billion as at the end June 2017, which can be more than the overall reserves, making the external vulnerable.
“India’s foreign exchange reserves are substantially higher than at the current turbulent period of 2013 and equipped to buffer any possible outflows,” said Saugata Bhattacharya chief economist at Axis Bank.
A great deal of the residual maturity debt that is short-term of India is not of creating at the time of maturity, high. About half are trade credits, and a significant amount of the rest is rupee-denominated, money risk that is nulling. The timing may cause trouble when it complies with any financial markets turmoil while is rolled over.
In ordinary circumstance the rollover could be eloquent, but if a tightening roils the markets, that could lead to a ‘sudden halt’ of both inflows, sparking money volatility. The debt consists of deposits as well as short term trade credit with maturity of up to one year.
Significantly, of those $199.5 billion debt, which comes up for maturity during the subsequent one year, $80 billion are NRI deposits. Barring major events, NRI deposits get rolled over readily as overseas find it rewarding to keep capital where returns are poor.
“The problem is not alarmist. It is not a matter of immediate concern because short-term debt proceeds to get rolled over,” said Madan Sabnavis, chief economist at Care Ratings. “There may be a problem with NRI deposits, however a lot could depend on how the exchange rate moves.”
Source
http://economictimes.indiatimes.com/markets/forex/will-debt-do-them-part/articleshow/61015369.cms
source http://www.nwsuburban-bankruptcy.com/can-debt-do-them-part/
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