Saturday, October 26, 2019

India's WB Loan V US Treasury Holdings

India continues to borrow from the World Bank @ 9.5% rate 
[ 2018 ].
https://www.moneycontrol.com/news/india/world-bank-to-continue-with-6-bn-annual-lending-support-to-india-4577921.html



https://data.worldbank.org/indicator/FR.INR.LEND?end=2018&locations=IN&start=2018&view=bar

India's US Treasury Holdings,as of June 2018,is $ 162.7 Billion.

https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/ 

US Treasury Yield less than 2% now.Let us take 3%.

Arbitrage loss for $ 6 Billion = $ 0.39 Billion.

In Rupees = 28 Billion or Rs 2800 crores per annum.

India's total World Bank Debt $ 105 Billion.

Loss by arbitrage V US Treasury Holdings = About Rs 49000 Crores or Rs 490 Billion per annum.

No comments:

Post a Comment