Haircuts in High Finance
jagannath rao adukur | 11 June 2004, 6:11amIn the rarefied heights of high finance one hears of haircuts.Post-asian crisis , most of the big-ticket lenders had to accept massive haircuts. In the heydays of the Asian boom who would have expected Daewoo to propose massive haircuts to international lenders? In India we call these outside-the-court settlements.The last five years or so the Indian bankers would have sacrificed huge amounts by way of these settlements .The old-timers in the banks try to block these settlements because they are ,in principle,against any dilution of the credit culture.But who cares .These things are happening without their involvement.It is to be seen what kind of an impact these settlements have ,in the long term , on the liquidity of the banks.
Current Mood: Bad Hair Day
Current Music: classical
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