Though the global economy is showing some signs of recovery, the problems are not over yet, according to Reserve Bank of India (RBI) governor Shaktikanta Das, who recently told the 21st FIMMDA-PDAI annual conference that the stabilisation of credit spreads across the rating ladder in India resulted in issuance of corporate bonds to the tune of ₹7.72 lakh crore in 2020-21.
The Fixed Income Money Market And Derivatives Association of India (FIMMDA) and Primary Dealers Association of India (PDAI) held their annual conference on August 31.Though the global economy is showing some signs of recovery, ,the problems are not over yet, according to Reserve Bank of India governor Shaktikanta Das, who told the 21st FIMMDA-PDAI annual conference that the stabilisation of credit spreads across the rating ladder in India resulted in issuance of corporate bonds to the tune of ₹7.72 lakh crore in 2020-21.#
"While there are signs of recovery, we are not yet out of the woods," said Das.
“Many central banks also implemented measures targeting specific market segments that were witnessing heightened stress. These measures were, in many cases, complemented by regulatory relaxations (lower capital and liquidity requirements) aimed at supporting credit flow from banks and other financial intermediaries and at stabilizing the financial system and restoring confidence in financial markets,” he said.
Through various measures, the Reserve Bank completed the borrowing programme in a non-disruptive manner and also created congenial conditions for other segments of the financial market such as the corporate bond market, Das added.
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