Indebted India Firms May Get a Reprieve as Dollar Loans Rebound
- Average margins on India dollar loans fall to lowest this year
- India companies need to repay record offshore debt by December
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Indian firms facing record debt repayments and one of Asia’s worst economic slumps may be catching a break as demand rebounds for corporate dollar loans in the region.
Dollar-denominated loans signed by Indian companies recovered to $3.4 billion in the September quarter, from the lowest since 2009 in the previous three months amid the pandemic, according to Bloomberg-compiled data. And in a sign that lenders are willing to earn less extending credit to those firms, average margins on U.S. currency loans fell to the least this year in the July-September period.