A STUDY ON EXTERNAL COMMERCIAL BORROWINGS DURING 2010-2014 WITH SPECIAL REFERENCE TO COIMBATORE

R Mohanasoundari, S Yenthizhai Selly
unpublished
The rising access of the firms to international capital markets reflects the transformation of corporate financing led by cross-border movement of capital, deepening of global financial markets, and strong inter-linkage across markets and institutional developments, particularly the mechanisms for risk assessment. Large access to international borrowings is also indicative of greater trade linkages and an enhanced exposure of firms to foreign currency transactions. Liberalization of capital
more » ... tion of capital controls by developing countries coupled with a rising appetite for asset diversification by international investors has also created an environment for firms from developing countries to increasingly access the international capital markets. The above mentioned developments seem to have enabled them to circumvent the credit constraint imposed by the underdeveloped local capital markets, widened their choices of financing and facilitated borrowings at a reasonable cost. It is concluded that ECB is a powerful instrument to mobilize the fund on uncertain situations. Government has already formed certain statuary norms to acquire the money from source country. Therefore, the ECB is seems to be a powerful weapon for economical development. According to the present scenario, the ECB awareness is found low at corporate environment. Hence, Government should take necessary action to enhance the awareness for better viability.
fatcat:bvyiynzdezecfef2vdou6m4y4u