Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

India's Growing Bad Debt Problem Is Second Only to Italy: Map

(Bloomberg) -- India is closing in on Italy for the dubious distinction of having the worst bad-loan ratio among the world’s major economies. With the Reserve Bank of India forecasting a worsening in the nation’s soured debt problem, acting Finance Minister Piyush Goyal said Monday that banks will consider setting up widely-held asset management companies to take over non-performing loans from lenders. The companies would take over delinquent accounts worth more than $73 million and bring in turn-around specialists to revive the assets before selling them to recover loans, according to a proposal from a government-appointed panel.

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