Corporate debt write-offs: privatising profits, socialising losses
Bingepods - VideosMarch 21, 202500:09:31

Corporate debt write-offs: privatising profits, socialising losses

Corporate loan write-offs are justified as necessary to improve banks’ financial


situation and to stimulate economic activity. However, they increase the fiscal deficit and


government debt, reducing the money available for social welfare and development


programmes. The burden is borne by taxpayers and we now also have to make do with


fewer public services. Large loan waivers also distort the market by handing corporate


houses an unfair advantage – they not only access cheap credit, but avoid


accountability. Smaller businesses, meanwhile, get no such relaxations and have to pay


higher interest rates to make up for the loss caused by the write-offs. It’s a process that


reeks of corruption and has no moral root. Please listen to the latest episode of All Indians


Matter.





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