Mumbai: Moody’s Investors Service said securitisation is the key to solve the country’s funding issues for the longer gestation sectors like housing, infrastructure and urbanisation projects.
The international rating agency assistant vice-president Georgina Lee said in a note, “While the government has injected its own capital to support various reform initiatives, securitisation could play a significant role by providing funds to finance development projects.” The new government has identified housing, infrastructure and other urbanisation initiatives as the key for pushing up the sagging economic growth.
She added securitisation can provide funds for real estate developers, project sponsors and retail loan providers, alleviating pressure on public finances and the banking system. Even though securitisation activity was up 29 percent in 2013-14 at Rs 490 billion, there has been a volatility in the activity in the recent years on lack of clarity in regulation and taxation fronts, she noted.
