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  Business   Economy  22 Feb 2017  Country needs bad bank badly: Subramanian

Country needs bad bank badly: Subramanian

REUTERS
Published : Feb 22, 2017, 5:48 pm IST
Updated : Feb 22, 2017, 5:48 pm IST

Chief Economic Adviser proposes setting up a public asset rehabilitation agency to fix balance sheet.

Chief Economic Adviser Arvind Subramanian
 Chief Economic Adviser Arvind Subramanian

New Delhi: India needs to create a bad bank quickly, the finance ministry's top economic adviser said on Wednesday, supporting forthright views expressed by Viral Acharya, the new deputy governor of the Reserve Bank of India.

Chief Economic Adviser Arvind Subramanian, who has proposed setting up a public asset rehabilitation agency to fix the balance sheets of both struggling banks and indebted companies, said the government was in touch with the RBI on the matter.

 

Addressing banks' bad loans is the top priority of the government, Subramanian told a news briefing, adding that it was important for banks to get political cover to write down debts they are unable to recover.

Addressing concerns about a recovery in global oil prices, Subramanian said he was comfortable with crude at $65 per barrel.

Tags: arvind subramanian, viral acharya, bad bank
Location: India, Delhi, New Delhi