The boom behind interest rates

The financial markets are now obsessed with the risk of aggressive Federal Reserve tightening. But the recent boomlet in the U.S. economy demonstrates how important it is for the markets to focus on the' health of the financial system — and not just interest rates — in determining whether monetary policy is adequate. In recent years the U.S. has experienced three sharply contrasting financial environments. In the mid — and the late-1980s, real interest rates were high but credit was easily available. During the early 1990s interest rates fell to the lowest level in three decades but money was scarce because banks and financial institutions had turned risk-averse in response to a sharp rise in their stock of nonperforming loans...

Ministry ire over I-T show

The Finance Ministry has expressed serious concern over the “negative” collection of income-tax during April 1994 as against Rs.413 crores collected in the same month of 1993. A prime reason for the negative show during the opening month of fiscal 1994- 95 has been the refund of excess tax collected earlier totalling Rs.1025.75 crores which was nearly double the refund figure for April 1993.

Railways plan to dilute equity in Concor

As part of the privatisation drive, Indian Railways proposes to divest in the current fiscal a portion of its equity holding in the wholly-owned subsidiary, Container Corporation of India (Concor). The paid-up capital of Concor is Rs. 65 crores, held entirely by the Indian Railways. Initially, only a token five per cent of the Concor equities is to be offered to the public, including the employees, Some shares might also be offered to financial institutions and mutual funds.

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