There are Rs 4.46 lakh crore of stalled residential projects across the country and their developers have become locked in a downward spiral with shadow banks.
Unemployment in the eurozone fell below the rate just prior to the world financial crisis in 2008 after reaching 12.1 per cent in mid-2013 at the height of the debt crisis.
Rating agencies had raised concerns over the mismatch in payments received on loans disbursed, and the payments to be made by DHFL on its debts.
The bank is in the process of auctioning the Jet Airway's property and is currently undergoing resolution under the NCLT.
Even after two years, the corporate insolvency resolution process continues to smooth out its kinks.
With light to the Cafe Coffee Day crisis, corporate debt has grown 65 per cent from Rs 38.8 lakhs crore in 2015 to Rs 64.1 lakh crores in 2019.
With six subsidiaries and nearly 30 associates and joint ventures, Coffee Day Enterprises’ consolidated debt as on March 2019 stood at over Rs 6,500 crore.
IL&FS' fund-based outstanding debt was Rs 94,216 crore as of October 8, 2018.
While stating that they were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion, DHFL auditors put out several qualifications and disclaimers.
The ability of DHFL to continue as a going concern depends on its ability to monetise its assets, secure funding from the bankers, restructure its liabilities and recommence its operations.
Hopes of a breakthrough to unlock bailout funds for Greece were dashed in recent weeks due to disagreements with its creditors.