Emerging markets: India; Peru; Saudi Arabia; Russia
Edited by Brian Caplen
Politically correct about debt
The excitement in the corporate sector has set analysts wondering whether India's government bond market - accounting for 60% of total issuance - could also be ripe for reform. But India's finance minster p Chidambaram is cautious about this prospect.
"It's a suggestion and as we say in parliament it's a suggestion for action. We have to consider it before we take a decision. No decision has been taken yet," he said during a visit to London in September.
He added: "Initially we allowed fiis [foreign institutional investors] to invest up to 30% in debt instruments. We have now increased this to 100% in debt instruments [excluding government bonds]. Let's see how this works. Let's see the flow of funds. One step at a time is what is politically correct in India today."