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India says no to IMF loan
July 31, 2013, 9:01 am

[AP Images]

The central bank left key interest rates unchanged earlier this week [AP]

The governor of the Reserve Bank of India says the country’s current economic situation does not justify any move to seek a loan from the International Monetary Fund (IMF).

“The answer is no. I don’t believe that we are in a situation where we have to go to the IMF. We are fairly resilient,”  Duvvuri Subbarao said in New Delhi.

Subbarao was responding to a query as to whether the country is planning to approach the IMF for a loan to shore up the balance of payment position.

The central bank left key interest rates unchanged earlier this week.

Indian Prime Minister Manmohan Singh had a brainstorm meet with industry leaders in New Delhi on Monday evening to discuss the economy and investment climate in the country.

“The prime minister wanted a report to be submitted within one month on what can be done in the next 2-3 months,” a PMO statement said.

The Reserve Bank of India was forced to sell dollars as the Indian rupee neared a record low on Wednesday, according to Reuters.

The Indian currency hit a low of 61.17 in early trading on Wednesday.

Source: Agencies

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