Foreign currency corporate borrowing: Risks and policy responses
Emerging market economies increasingly rely on foreign currency debt, leaving borrowing firms exposed to sudden stops and currency depreciations. This column examines the dynamics of corporate foreign currency borrowing in India using new firm-level data. It finds that interest rate differentials are a strong predictor of foreign currency debt issuance, particularly after the Global Crisis. After the ‘taper tantrum’ of 2013, the Reserve Bank of India introduced new macroprudential policies that were effective at mitigating the riskiest borrowing and reducing the vulnerability of Indian firms.
U.S. pandemic relief program mistakenly paid $692 million in duplicate loans: watchdog
WASHINGTON (Reuters) – The U.S. Small Business Administration (SBA) mistakenly paid out $692 million in duplicate small-business pandemic relief loans because of technical errors and other mistakes, the agency’s internal watchdog said on Monday.
