Skip to main content

Conditions slowly improve, interest waiver dispute

The gradual loosening of strict containment measures has provided a slight boost to activity, but with new COVID-19 cases still rising sharply, the recovery is likely to be slower and bumpier than in places where the virus has been controlled. Meanwhile, the Supreme Court and the RBI are embroiled in a dispute over interest accrued on loans under the six-month moratorium. It’s unclear how the matter will be resolved but our view is that an interest waiver would do more damage to an already-fragile banking sector.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access