The insolvency puzzle
It refers to the article ‘IBC’s quick fix problem’. Any new initiative or a law will encounter teething issues.
But if we are still facing issues after seven years in IBC, then it means that it was not thought through efficiently before being introduced.
If taxmen are still pursuing the companies whose tax debts have already been waived off then it means there is no synchronization between key stakeholders.
The government would do well to have a comprehensive discussion with all stakeholders to bridge policy gaps.
Since the exchequer’s money is also involved hence a pragmatic decision should be taken in the larger interests of all stakeholders.
RBI must pause
Apropos ‘MPC may hike repo rate by 25 bps (February 24), due to the stubborn inflation, RBI rates hike are leading to an increase in lending rates and EMIs for borrowers.
This is hitting the honest borrowers hard.
The government claims credit for property values increasing which should be a boon to the owners and naturally when all prices increase inflation is bound to increase.
Hence until this vote bank politics stops inflation cannot be controlled and in such circumstances the RBI should not go on increasing policy rates . The MPC must not punish honest borrowers.
Katuru Durga Prasad Rao
Stop the speculation
Apropos ‘MPC may hike repo rate by 25 bps’ (February 24), the Monetary Policy Committee announced changes in policy rates recently. Once they are announced, usually there’s no further talk of repo rate. However, the changes announced may be analysed and their impact assessed.
This time, however, MPC continues to be in the news. One reason is equal division of vote in the last meeting with the RBI Governor voting for the change.
Though the next MPC meeting is scheduled in April, the media is already agog with news that there may be another hike.
This kind of speculation is not desirable as it impacts trading activities and may influence prices of various commodities.
A futile war
With reference to the article ‘The long and short of the war’ (February 24), we are no wiser after an year of war in Ukraine. Three major human follies, in a span of one decade, have severely dented the sagacity of nations to rein in both their politics and leadership. The Wall Street imbroglio of 2009 managed to disrupt capital flow after bursting of asset bubbles and the folding up of many finance institutions.
As recovery was in progress, a pandemic struck to freeze economic activity, globally. The Ukraine war in its wake, has accentuated these hardships. Yet again, global leaders stay indifferent to economic travails and loss of life and property.
In this day and age, to think a war can trigger global economic resurgence is an anachronism, as nations such as Afghanistan, Iraq, Syria and now Ukraine are bearing the brunt of armed conflict.