Clock is Ticking on India's Bad Bank Debts Under Bankruptcy Laws

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India’s central bank plans to use insolvency laws against more corporate defaulters to speed up resolution of the country’s bad loans that have swelled to $180 billion, Bloomberg News reported. “The clock’s already ticking -- some cases are already before the National Company Law Tribune," said Sanjeev Sanyal, principal economic adviser to the finance ministry. "More lists will be out in the next few months." Cleaning up India’s stressed loans is the biggest priority of Prime Minister Narendra Modi’s government, Sanyal said in an interview in New Delhi. The Reserve Bank of India last week notified 12 large debtors against whom it had ordered banks to use bankruptcy laws to resolve 2 trillion rupees ($31 billion) or almost a fourth of the country’s bad debts. The process in these cases will be completed within a period of 90 days compared with 180 days in other cases, the government said. For Modi, getting rid of the bad loans is crucial to reviving investments in Asia’s third-largest economy to meet his election pledge of adding jobs before the 2019 elections. Read more.