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Educational Data |
| Higher Education |
| Opinion Poll |
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Financial Engineering > Foreign Loans |
17 September 1996 |
I N T E R N A T I O N A L I N D I A N |
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FINANCIAL ENGINEERING OF ( LOW INTEREST! ) |
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F O R E I G N L O A N S |
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SPECIFICALLY, TO BE REPAID IN FOREIGN CURRENCY |
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"SAMARTHA" |
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Here is a sample calculation in Financial Engineering of (LOW INTEREST!) FOREIGN LOANS, during the ten year period of 1985 to 1995, TO BE REPAID IN FOREIGN CURRENCY, with the following simplified assumptions : |
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Exchange rate
of 1 US$ is nearly equal to Rs.11.00 in 1985 |
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ADVERSE EFFECT OF DEVALUATION MAY ENCOURAGE INVESTMENTS OUTSIDE INDIA AND IT MAY DISCOURAGE INVESTMENTS IN INDIA. |
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Assume average interest rates during 1985 to 1995 as nearly equal to 6.5% on (LOW INTEREST!) FOREIGN (US$) LOANS, SPECIFICALLY TO BE REPAID IN FOREIGN CURRENCY, and nearly equal to 12% on DOMESTIC LOANS. |
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| Assume compound interest during 1985 to 1995. | |
When the (LOW INTEREST!) FOREIGN (US$) LOANS ARE REPATRIABLE, SPECIFICALLY TO BE REPAID IN FOREIGN CURRENCY, during the ten year period of 1985 to 1995, it shows an equivalent of nearly 20% in "Rupee Terms" (say, rate of annual Return on Investments, ROI, in INDIA). |
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What can be our century-old wisdom in (proudly!) announcing our (LOW INTEREST!) FOREIGN (US$) LOANS, SPECIFICALLY TO BE REPAID IN FOREIGN CURRENCY [say, at nearly equivalent of 20% and above in "Rupee Terms") as against our low interest (nearly 12%) DOMESTIC LOANS? Great Indian Sixth Sense : MISMANAGE! Are we still immature to understand it? |
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| GOING
GLOBAL, THE RIGHT WAY... GLOBAL LEADERSHIP IN RESOURCE MANAGEMENT FINANCIAL ENGINEERING IN TOTALITY |
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