A debt trap
June 3, 2021
This refers to the letter ‘The habit of borrowing’ (June 1) by Raja Shafaatullah. One strongly agrees with the views of the writer. In one of his speeches, Quaid-e-Azam Muhammad Ali Jinnah had said, “Because of our addiction to living beyond means and borrowing money, we lost our sovereignty over this Subcontinent.” Even today, we have no control over our spending habits.
Our debt stands at $116 billion. Can’t we reduce our government expenditure? It seems that our government doesn’t have the will to take the country out of the economic mess. If we continue like this, we will never progress. The writing is on the wall. Will someone take notice of the situation or will we continue to slide towards disaster and anarchy?
China has made a start in reversing excessive capital flows into the real estate market, with the top banking and insurance regulator s measures to rein in funneling of business loans into property financing bearing fruit.
Property lending portfolio of lenders increased by 10.5 percent on a yearly basis by the end of April, with the growth rate hitting an eight-year low, said Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, at a news conference on Tuesday.
The country s top banking and insurance regulator, together with the Ministry of Housing and Urban-Rural Development and the People s Bank of China, took measures to prevent business loans from flowing into the real estate sector by requiring banks to strengthen borrower qualification verification, credit demand verification and the administration of intermediaries.
The Bengaluru-headquartered KreditBee in February concluded its Series C equity round worth $75 million (about Rs 545 crore) from Premji Invest, Mirae Asset Naver Asia Growth Fund, Alpine Capital and Arkam Ventures consisting of both primary and secondary investment.Kred