Consider the following statements.
1. The Indian Bankruptcy Code has provided a resolution framework that will help corporates clean up their balance sheets.
2. Government strengthened the balance sheets of Public Sector banks through large re-capitalization package.
Consider the following statements.
1. The Indian Bankruptcy Code has provided a resolution framework that will help corporates clean up their balance sheets.
2. Government strengthened the balance sheets of Public Sector banks through large re-capitalization package.
The correct option is C Both 1 and 2
Decisive action was taken to grasp the nettle of the Twin Balance Sheet (TBS) challenge, arguably the festering, binding constraint on Indian growth prospects.
On the 4 R’s of the TBS—recognition, resolution, recapitalization, and reforms—recognition was advanced further, while major measures were taken to address two other R’s. The new Indian Bankruptcy Code (IBC) has provided a resolution framework that will help corporates clean up their balance sheets and reduce their debts. And in another critical move, the government announced a large recapitalization package (about 1.2 percent of GDP) to strengthen the balance sheets of the public sector banks (PSBs). As these twin reforms take hold, firms should finally be able to resume spending and banks to lend especially to the critical, but-currently-stressed sectors of infrastructure and manufacturing.
Both 1 and 2
Decisive action was taken to grasp the nettle of the Twin Balance Sheet (TBS) challenge, arguably the festering, binding constraint on Indian growth prospects.
On the 4 R’s of the TBS—recognition, resolution, recapitalization, and reforms—recognition was advanced further, while major measures were taken to address two other R’s. The new Indian Bankruptcy Code (IBC) has provided a resolution framework that will help corporates clean up their balance sheets and reduce their debts. And in another critical move, the government announced a large recapitalization package (about 1.2 percent of GDP) to strengthen the balance sheets of the public sector banks (PSBs). As these twin reforms take hold, firms should finally be able to resume spending and banks to lend especially to the critical, but-currently-stressed sectors of infrastructure and manufacturing.
