Loan waivers do not impact the borrowing cost of states. “Interestingly, the data also indicate that farm loan waiver has no impact on the yield of these States, as should have been the case. As it is quite expected that, when these States will raise their market borrowing through SDLs, the yield will higher comparing to States who has not announced farm loan. Interestingly, our finding suggest that, farm loan waiver has no impact on the yield of these States. Karnataka, Bihar,Uttarakhand and Jharkhand are the States whose market borrowing has increased rapidly over the years.

Source: dna November 23, 2017 09:22 UTC