Banks averse to lending to Indian road projects.
BANKING AND CREDIT NEWS-September 19, 2018--Banks averse to lending to Indian road projects
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Global Banking News - 19 September 2018
Risk-averse banks are not interested in lending to Indian road projects despite a call from the Indian transport minister for more investment, according to Bloomberg.
Loans to road contractors and bank guarantees for projects have dried up, threatening India's plans to build more than 84,000 kilometres of roads by 2022.
Minister Nitin Gadkari said, 'For the sake of industry, sake of investment, sake of contractors, creating jobs, for the sake of economy, we need positive support from banks. They are giving support but it is a slow process.'
India requires significant investment to modernise its highways network. It has the worst bad-loan ratio after Italy among the world's 20 largest economies.
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