ID :
62129
Sun, 05/24/2009 - 17:49
Auther :
Shortlink :
https://www.oananews.org//node/62129
The shortlink copeid
India buys US debts worth 38.2 bn dlr in just one year
New York, May 24 (PTI) As the recession-hit US economy is
groping in the dark over uncertain financial position, India
has increased its exposure to American debt securities by over
three-fold to USD 38.2 billion till March compared to the
year-ago period.
The emerging nation's investment in the US debt stood at
USD 11.8 billion in March 2008.
According to the data from the US Treasury Department,
India has bought American debt instruments worth USD 38.2
billion till March 2009.
Interestingly, India's exposure to US debt has surged by
about USD 20 billion since October 2008, when the ongoing
financial turmoil turned for the worse. The world's largest
economy was rattled by the then-famed Lehman Brothers filing
for bankruptcy in mid-September.
Considered to be one of the safest investment bets, India
had invested USD 18.3 billion in October 2008 in the American
securities, which soared to USD 38.2 billion in March.
Among the foreign countries, neighbouring China has the
highest investment of USD 767.9 billion.
Japan, the world's second largest economy has invested
USD 686.7 billion in US debts till March 2009.
The American economy officially entered into recession in
December 2007 and has contracted at a rapid pace in the
previous two quarters.
In the first three months of this year, the US GDP shrank
6.1 per cent, whereas it had declined 6.5 per cent in the
December quarter.
Though corporates, banks and other financial institutions
can purchase the bonds, in the case of India, the Reserve Bank
accounts for large part of the lending.
On the other hand, the number of bank failures in the US
are rising almost every week, reflecting the weak financial
situation. More than 46 banks have been closed since September
2008 and a majority of them are small and regional lenders.
The US authorities has come up with many measures,
including the USD 700 billion rescue package and plans to mop
up toxic assets worth nearly USD 1 trillion from the financial
system, to revive the economy. PTI RR
AM
groping in the dark over uncertain financial position, India
has increased its exposure to American debt securities by over
three-fold to USD 38.2 billion till March compared to the
year-ago period.
The emerging nation's investment in the US debt stood at
USD 11.8 billion in March 2008.
According to the data from the US Treasury Department,
India has bought American debt instruments worth USD 38.2
billion till March 2009.
Interestingly, India's exposure to US debt has surged by
about USD 20 billion since October 2008, when the ongoing
financial turmoil turned for the worse. The world's largest
economy was rattled by the then-famed Lehman Brothers filing
for bankruptcy in mid-September.
Considered to be one of the safest investment bets, India
had invested USD 18.3 billion in October 2008 in the American
securities, which soared to USD 38.2 billion in March.
Among the foreign countries, neighbouring China has the
highest investment of USD 767.9 billion.
Japan, the world's second largest economy has invested
USD 686.7 billion in US debts till March 2009.
The American economy officially entered into recession in
December 2007 and has contracted at a rapid pace in the
previous two quarters.
In the first three months of this year, the US GDP shrank
6.1 per cent, whereas it had declined 6.5 per cent in the
December quarter.
Though corporates, banks and other financial institutions
can purchase the bonds, in the case of India, the Reserve Bank
accounts for large part of the lending.
On the other hand, the number of bank failures in the US
are rising almost every week, reflecting the weak financial
situation. More than 46 banks have been closed since September
2008 and a majority of them are small and regional lenders.
The US authorities has come up with many measures,
including the USD 700 billion rescue package and plans to mop
up toxic assets worth nearly USD 1 trillion from the financial
system, to revive the economy. PTI RR
AM
