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Indian Borrowing on International Capital Markets in the Eighties

Prof. Indira Rajaraman
1993
Working Paper No
22
Body

This paper reports the results of an effort to collect loanspecific details on Indian external commercial borrowing starting 1980. Official data on these borrowings, are confidential and not accessible to academic researchers. What is presented here has therefore been assembled from Euromoney, supplemented by other sources. While information on amount borrowed was available in all but a few cases, that on rates and on clauses bearing on rates, such as whether the loan was tax-spared, is very incomplete. Missing altogether is information on other elements of the costs of these loans such as front-end and agency fees, and commitment fees in arrangements with deferred drawdown or underwriting provisions, which are typically not reported in tombstones or by the borrowing organisations. An exercise that began with trhe objective of trying to understand cross-loan variations in terms had therefore necessarily to stop at compilation, and not proceed towards formal analysis. At the existing level of noise, the data can at best provide a base from which to motivate the issues.

wp.iimb_.22.pdf (3.97 MB)

Indian Borrowing on International Capital Markets in the Eighties

Author(s) Name: Prof. Indira Rajaraman, 1993
Working Paper No : 22
Abstract:

This paper reports the results of an effort to collect loanspecific details on Indian external commercial borrowing starting 1980. Official data on these borrowings, are confidential and not accessible to academic researchers. What is presented here has therefore been assembled from Euromoney, supplemented by other sources. While information on amount borrowed was available in all but a few cases, that on rates and on clauses bearing on rates, such as whether the loan was tax-spared, is very incomplete. Missing altogether is information on other elements of the costs of these loans such as front-end and agency fees, and commitment fees in arrangements with deferred drawdown or underwriting provisions, which are typically not reported in tombstones or by the borrowing organisations. An exercise that began with trhe objective of trying to understand cross-loan variations in terms had therefore necessarily to stop at compilation, and not proceed towards formal analysis. At the existing level of noise, the data can at best provide a base from which to motivate the issues.

Keywords:
wp.iimb_.22.pdf (3.97 MB)