New Delhi: Excess debt on the books of Indian companies remains a medium-term risk to Indias growth trajectory, the International Monetary Fund (IMF) said on Wednesday.
Excess corporate debt also increases risks to banks, IMF said in its Global Financial Stability Report. Banking systems are vulnerable to further declines in growth or profits, particularly in countries at later stages of the credit cycle (such as India), where slowing credit growth and risks from elevated levels of non-performing loans are most acute, it said.
While political instability in many countries such as Brazil, Turkey and South Africa have impacted their macro-financial stability, India continues to benefit from a stable political environment, IMF …
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