January 1, 2008
Show AI Summary
External debt growth driven by commercial borrowings and short-term liabilities increases reserve coverage and lowers debt-service ratio.
External debt at end-September 2007 was US$190.5 billion, rising 5.5% over the quarter and 12.3% since March 2007; the increase mainly reflected higher commercial borrowings, NRI deposits, multilateral debt and expanded short-term debt coverage (including suppliers' credits up to six months and FII short-term instruments). Long-term debt comprised 83.8% of the total, sovereign-to-private ratio was roughly 26.9:73.1, reserve cover rose to 130% and the debt-service ratio declined.