indianexpress.com :: Farm loan waiver not to hurt banks: Chidambaram

Farm loan waiver not to hurt banks: Chidambaram

Reuters

Posted online: Thursday, March 06, 2008 at 1224 hrs IST

New Delhi, March 6:
The $15 billion farm debt waiver announced in the 2008/09 budget will strengthen the banking sector and the RBI supported the idea, Finance Minister P Chidambaram said on Thursday.

He said the fiscal stimulus and higher public spending unveiled in last Friday's budget would stimulate consumption and boost growth.

"The banking sector will be compensated in a way that the banks' will not be constrained at all," Chidambaram said after a meeting of the board of directors of the Reserve Bank of India.

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Farm loan waiver not to hurt banks: Chidambaram Reuters Posted online: Thursday, March 06, 2008 at 1224 hrs IST New Delhi, March 6: The $15 billion farm debt waiver announced in the 2008/09 budget will strengthen the banking sector and the RBI supported the idea, Finance Minister P Chidambaram said on Thursday. He said the fiscal stimulus and higher public spending unveiled in last Friday's budget would stimulate consumption and boost growth. "The banking sector will be compensated in a way that the banks' will not be constrained at all," Chidambaram said after a meeting of the board of directors of the Reserve Bank of India.