Trade credit, ECB add to pressure on exchange rate
Trade credit of about $80 billion is due for repayment between June 2012 and June 2013. Along with this, ECBs raised during the boom period of 2002-2007 are also due for redemption. Around $21 billion worth of ECBs will have to be repaid and along with non-resident Indian deposits and other short-term loans, the total debt stock that is up for repayment is a whopping $150 billion.
Meanwhile, short-term trade credit surged 8% during April-June to $70.51 billion from $65.13 billion in the previous quarter, according to data from the Reserve Bank of India; in previous quarters, trade credit had grown by just 4-5%. Economists said that trade credit has risen in the July-September quarter as well but were unwilling to estimate the amount. Data for July-September trade credit will be released by end of December as the RBI puts off balance of payments data with a lag of a quarter. Trade-related credit
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