Subramanian Swamy keeps up attack on CEA, brushes aside Arun Jaitley’s remarks

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New Delhi | Updated: June 23, 2016 8:11:12 PM

Unfazed by the government and BJP distancing themselves from his remarks, Subramanian Swamy today continued his attack on Chief Economic Adviser Arvind Subrmananian while dismissing Finance Minister Arun Jaitley's counsel for restraint.

"Let him say what he wants....I have nothing to do with what Jaitley says. I can talk to the party President or the prime minister," Swamy told reporters here. (PTI)“Let him say what he wants….I have nothing to do with what Jaitley says. I can talk to the party President or the prime minister,” Swamy told reporters here. (PTI)

Unfazed by the government and BJP distancing themselves from his remarks, Subramanian Swamy today continued his attack on Chief Economic Adviser Arvind Subrmananian while dismissing Finance Minister Arun Jaitley’s counsel for restraint.

“Let him say what he wants….I have nothing to do with what Jaitley says. I can talk to the party President or the prime minister,” he told reporters who asked him about Jaitley’s disapproval of his attack on a technocrat in the government who cannot respond.

Earlier in the morning, Swamy kept up his criticism of Subrmanian saying he will “suspend” the demand for his sacking if the government considers him patriotic despite his attempts in the past of trying to twist India’s arm.

“If an Indian?, held patriotic, can advise a foreign nation where he works, to twist India’s arm, is to be forgiven, then I suspend my demand.

“AS (Arvind Subramanian) to US Cong: “US initiatives by discriminating against India companies and exporters will exert pressure on India to open up” AS 13/3/13!,” Swamy tweeted today.

Swamy yesterday caused a flutter when he sought Subramanian’s sacking for allegedly taking anti-India stance when he was an IMF economist in Washington prior to joining the Finance Ministry.

Also Read | FM Arun Jaitley hits back at Subramanian Swamy on his attack on Shaktikanta Das

Jaitley had yesterday debunked Swamy’s call for sacking Subramanian saying “Government has full confidence in CEA. His advice to government from time to time has been of great value”.

Subramanian was appointed CEA by the BJP government in October 2014 after his predecessor Raghuram Rajan moved to the RBI as Governor in September 2013.

BANKS China banks write off USD 300 billion in bad loans: official

Beijing, Jun 23 (AFP) Chinese banks have written off more than USD 300 billion of bad loans in the past three years, an official said today as Beijing seeks to reassure investors that the country can cope with its mounting debt problem.

The giant figure comes as Beijing has made getting credit cheap and easy in an effort to boost slowing growth in the world’s second-largest economy.

But analysts have warned that a debt-fuelled rebound might be short-lived and ballooning borrowings risk sparking a financial crisis as bad loans and bond defaults increased.

Also Read | Subramanian Swamy twists facts, gets it wrong on Arvind Subramanian

Wang Shengbang, a high-ranking official with the China Banking Regulatory Commission (CBRC), said the country’s banks had seen their non-performing loan ratios rise consistently for four and a half years, reaching 1.75 per cent at the end of March.

But they were well-prepared to handle the losses, he said, adding domestic lenders had written off two trillion yuan (USD 304 billion) of bad loans over the past three years.

“Current figures show the banking sector’s operation is generally stable and the risks are under control,” he told reporters at a briefing.

“The CBRC took precaution measures in advance and in 2011… required banks to set aside more in provisions while the economy was in an upturn cycle so that we were able to accomodate huge writedowns when the economy was in a downturn cycle,” he said.

China’s total debt hit 168.48 trillion yuan at the end of last year, equivalent to 249 per cent of the national GDP, top government think tank the China Academy of Social Sciences (CASS) has estimated.

The most worrying risks lie in the non-financial corporate sector, particularly in state-owned enterprises (SOEs), Li Yang, a senior CASS researcher said last week.

But none of the officials at today’s briefing — from the central bank, finance ministry, and national planning agency — addressed questions about SOE debt levels, with the moderator referring the issue to the “relevant authorities”.

China’s government debt ratio was 41.5 per cent of GDP at the end of 2015 if contingent debt — obligations that authorities are not liable for at present, but could become responsible for — was included, said Wang Kebing of the finance ministry.

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