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No need for IMF loan: Subbarao

Last Updated: Tuesday, July 30, 2013 - 22:45

Mumbai: Reserve Bank Governor D Subbarao on Tuesday said India's current economic situation does not warrant any move to seek loans from the International Monetary Fund.

"The answer is no! I don't believe that we are in a situation where we have to go to the IMF. We are fairly resilient," Subbarao told reporters at the customary post-policy media briefing.

The Governor was responding to a query as to whether the country is planning to approach the International Monetary Fund (IMF) for a loan to shore up the balance of payment position.

There have been suggestions that one way of shoring up the depleting forex cover as well as getting some foreign exchange to finance the widening current account deficit is borrowing from the IMF.

Finance Ministry officials had said there were many ways to finance the CAD, which touched an all-time high of 4.8 per cent of GDP last fiscal, such as issuing sovereign bonds or NRI bonds, but have not been forthcoming on any of them.

In the past, the IMF had bailed out out New Delhi from balance of payment crises on more than two occasions.

PTI

First Published: Tuesday, July 30, 2013 - 22:45
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