There are concerns that rules under the Insolvency and Bankruptcy Code have been made too strict and can result in bigger haircuts for lenders. Photo: BloombergThe twin balance sheet problem is said to be one of the biggest impediments to the revival of growth and private investment. On the one hand, the centre is working on a massive bank recapitalization programme, and on the other, lenders are taking defaulters to the bankruptcy court. Through an ordinance last week, the government barred wilful defaulters and people associated with defaulting firms from participating in the insolvency process. Finance minister Arun Jaitley, in a blog post on Tuesday, said the government has put in place a clean system by which wilful defaulters may be kept away from the management and the recovery will happen in a time-bound manner.

Source: Mint November 29, 2017 18:33 UTC