Q. Which of the following is/are part of external debt?
3.Short term trade credit
Choose the correct answer from below given codes:
Explanation: The long-term debt estimated at US$ 499.1 billion, constituted the largest chunk of 80.4 per cent, while the short-term debt, at US$ 121.7 billion, accounted for 19.6 per cent of the total.
- The short-term trade credit was predominantly in the form of trade credit (96 per cent) financing imports.
- Commercial borrowings (CBs), NRIs deposits, short-term trade credit and multilateral loans together accounted for 90 per cent of the total external debt.
- While NRI deposits marginally contracted during end-March 2021 and end-March 2022, CBs, short-term trade credit and multilateral loans, on the other hand, expanded during the same period.
- The rise in CBs, short-term trade credit and multilateral loans together was significantly larger than the contraction in NRI deposits.