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Will Indian FM give Pakistan more IMF loans?

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    #16
    India has a ext debt of 100 bilion , Pak has a debt of 31 billion .. cool ... looks bad for India I must say .. except for one small detail ... if you are going to analyse on actual terms , consider that India is 3 time geographically bigger , the industry is 3 times bigger etc etc .. so if India is mostly on the same level of Pak .. if India had a lesser external debt that would mean its a much more developed country ...for that matter USA has the largest debt amongst countries ,,, does that mean that USA is on teh verge of collapse ????? My friends ... its the economy and infrastructure that makes the difference .. not the size of the debt a country has.

    Rudra
    Mumbai

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    Religion was created by man.....but dont forget......man was created by God.... Allah Ho Akhbar, Halleluiah, Jay Dev..... all are salutations to the Great One....

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      #17
      Rudra on your logic India has as much debt and borrowing as PAK? So that was my point? - are you agreeing?

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        #18
        Kudra lets say that india has to pay 4 billion dollars back in interest per year (this is a very low estimate).
        With exports near 36.3 billion dollars, and 50.6 billion dollars of imports, you already in trouble as you have to pay that 36 earnings plus 14 more to pay all your imports plus the 4 billion in interest!!!
        So you end up borrowing more and more to pay all this back.
        Thus you get more debt and larger interest etc.
        You see that it is a circle.
        You can't get out of it.
        However pakistan has to pay 30 miilion in interest (over estimate) with exports of 8.4 billion and imports of 9.8 billion so this way.
        We lose our 8.4 billion but we also have to only pay around 1 billion extra.
        And since our exports this year have increased along with investment, we might get rid of our debt faster.

        Now you can see that the larger the debt the more strain there is on the govt to build infrastructure and stuff as they have a limited amount of money.
        And paying all these loans and stuff we loose a lot more money as it is.
        So india and pakistan with a large debt is not good.
        But pakistan is in a better position

        ------------------
        CROIRE A L'INCROYABLE
        You can't fix stupid. So might as well troll them!

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          #19
          Well C M , your research has inspired me to refer this to my relative who works with the World Bank and who s associated with the IMF and he had this to say about External debt ... this depends on two factors.. how much you are eligible for and houw much you require. He has this to say about external debt. It all depends on whether it is the form of investment in infrastructure and growth of the economy or in supplementing activities of need such as health, food (in case of famine) etc . I know for fact that 65% (give or take 10% ) is for infrastructural development that is a form of investment as it boosts the economy and hence the earnings of a country, in short like the investment you make on a business. In the same way it takes time for a business to become profitable, it will take some time for a country to bcome independent financially .. also he mentioned that loans are given on the capacity of the country to pay it back. India's gold reserves are what got it loans when India was on the verge of collapse before narsimha rao introduced reforms.
          More on this topic later after I get som more authentic information

          (ps:- dont take this info as trash just because my relative is Indian :0)))))

          Rudra

          ------------------
          Religion was created by man.....but dont forget......man was created by God.... Allah Ho Akhbar, Halleluiah, Jay Dev..... all are salutations to the Great One....

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