While the immediate crisis may be averted, it is unlikely that it will vanish completely as long as real investments fail to yield returns
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In China, the Evergrande crisis, and in India, the proposal to set up a ‘bad bank’, the National Asset Reconstruction Company Limited (NACRL), are essentially different facets of the same issue – non-performing assets (NPAs) – the former a stark example of the borrower’s predicament and the latter, the search for a possible solution by the lenders of money, most significantly banks. While discussions continue on the finer details of the Evergrande episode and NACRL proposal, it is useful…
