Friday, April 24, 2009

Indian Ordered Funding Issuance Amount Drop 18 Per Cent - April 24, 2009

On Thursday, credit rating agency ICRA said the structured financial instrument market dropped by an 18 % to Rs 52,000 crore during the financial year ended March 31, 2009. At the same time as the structured financial instrument market observed an 18% decline in value terms, transactions were lower 30% as against the previous fiscal.

Securitisations, including rated bilateral assignments of retail assets, together observed a 47 % fall in volume, the rating agency said on Thursday. According to ICRA, the Indian structured finance market was not harshly impacted by the global credit crisis, mainly due to the absence of transactions involving complex derivatives, revolving structures, and credit default swaps.

"The tight liquidity conditions during the third quarter of FY 2009, however, led to significant redemption pressure on mutual funds," Mr P K Choudhury, vice chairman and group CEO, ICRA. stated in the release.

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