“Spillovers from Dollar Appreciation,” contained other warnings for India. | glObserver Global Economics

The International Monetary Fund (IMF) recently conducted stress tests to model what result an appreciation in the price of the US dollar would have on economies around the world.

Sourced through Scoop.it from: globserver.cn

Based on these assumptions, the IMF found that the median interest coverage ratio (ICR), which reveals how easily a company can pay interest on deficit, showed a significant decline in most nations surveyed. This indicated a strong increase in borrowing costs and lost earnings. For India, in particular, the ICR (which is by presently below 1.5 %), grew as high as five %. Deficit is seriously at risk at these levels.

See on Scoop.itglObserver Asia


Author: globserver

Director of Eyecom china

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