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Asides
A World Bank loan in Rupees?
By: Karthik :+: Under: Asides, EconomicsOn: ⋅ December 7, 2007 ⋅
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With the US Dollar sinking, thanks to a whole bunch of bad economics, it is not just oil and software companies that are caught in the midst. The State Government of Maharashtra seems to have better economists that most other countries in the world. Maharashtra is requesting a loan of $3.5 Billion, but wants the loan in Indian Rupees, instead of US Dollars. Hey I would not blame them. What’s interesting is the fact that if this loan is approved, it would be the first time ever when a loan has been sanctioned in Indian Rupees.
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It may be right in one respect but not in all as if the fluctution stays with the rupee and the excahnge of the rupee become stable than after a bit time india has to pay the money in rupees which is more than the money that is taken right now