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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