Rupee crash, Covid-19 to make India Inc's overseas debt repayments costlier

Bankers said some of the firms may default on their overseas loans as their cash flows get impacted due to falling sales due to the shutdown

Overseas loan repayments of several Indian firms, due by March-end or later, will become costlier due to the rupee crash and COVID-19 pandemic, which would impact cash flows of all companies, bankers warn.

Bankers said overseas debt worth several billion dollars of top corporate houses are due to be refinanced or will be repaid in the March and subsequent quarters. “Whatever option the company chooses between refinancing and repayment, it would end up paying more due to the 4 per cent fall in rupee’s value versus the dollar since January,” a banker said.

Global rating firm Moody’s warned that corporate liquidity could