labels: finance - general, economy - general
India''s external debt surges to $132.1 billion news
30 September 2006

Mumbai: The country''s external debt increased by $6.9 billion during April-June 2006, reflecting a strong appetite for India Inc to raise capital abroad. External commercial borrowings (ECBs) of the country rose by $5.4 billion during the quarter, according to figures released by the Reserve Bank of India (RBI).

RBI attributed the increase partly to a decline in the stock of ECBs at end-March 2006. While gross disbursements under ECBs were high during 2005-06, net disbursements had remained low on account of repayment of India Millennium Deposits (IMDs), it said.

Foreign exchange reserves of the country exceeded its external debt by $30.8 billion, providing a cover of 123.3 per cent to the external debt stock at the end of June 2006.

The share of concessional debt in total external debt declined to 30.2 per cent at end-June from 31.5 per cent at end-March. This ratio was around 45.9 per cent at end-March 1991, indicating a gradual increase in non-concessional private debt in external debt stock.

Most of the external debts contacted during the period were in US dollars, with the currency accounting for 46.1 per cent of total external debt stock.

Prepayment of external bilateral debt amounted to $59.2 million during the period.

All the components of external debt except rupee debt have risen during the quarter, the figures revealed.

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India''s external debt surges to $132.1 billion