Banking trouble never seems to end for the world. Even despite of pumping huge funds to bailout and buying up crisis lead bank mortgage assets the story still remains to be unfolding few funds more to be spent.
This time the number have taken a growth in European banks (ECB).European countries have been trying to hard to come out of the crisis of recession which have jeopardized theirs future economic growth.
In the month of June 2009 the ECB have estimated the that toxic assets and bank write down will eat up in total around $218 billion from the start of the financial turmoil to the end of 2010, while bad loans would account for another $431 billion — a total of $649 billion, with an estimated $366 billion already announced. Now this figure is revised up for more write ups.
Now a question might come when this nightmare of toxic assets and bailout will come to an end. And last but not the least how this affect Indian market?
The UK has strong ties with India, and UK companies are well positioned to take advantage of this growing export and investment market. India’s major trading partners are China, the US, the UAE, the UK, Japan and the EU. The exports during April 2007 were $12.31 billion up by 16% and import were $17.68 billion with an increase of 18.06% over the previous year. The image below shows the import figures of Europe.
So the rising bailout funds will exert tremendous pressure on the Indian economic growth in the comings days. The market which is flooded with cheap money might work against all these negative cues but in the later time India along with other Asian economies will have to face some hard times due these mounting deficits.
Author:- Indranil Sen Gupta
Financial, Economic Writer and Research Analyst