Ultimately, they said, they hoped the reform would remove an impediment to higher economic growth. The idea was the law would provide an incentive to owners to negotiate over distressed debt, rather than face an accelerated bankruptcy process over which they would have very little control. India has 14.5 trillion rupees ($204.16 billion) of distressed assets, of which only around 730 billion rupees ($10.26 billion), or about 5%, have been resolved. “Most foreign investors are sitting on the fence waiting for the resolution process to stabilize,” said Antony of Edelweiss. But for the economy, it is an even greater cost given banks fund more than 60% of India’s credit requirements.

Source: Dhaka Tribune January 27, 2019 16:07 UTC