It’s risky to obtain foreign loans; Sri Lanka warned.

July 29, 2012 at 12:46 pm | Lanka C News.

It’s risky to obtain foreign loans; Sri Lanka warned.
Fitch Ratings, a credit ratings institute emphasizes that, even though, Sri Lanka could obtain more loans from the foreign countries, the government and relevant companies should control the risk.
Since loans could be obtained from the foreign countries for lesser costs, the risks should be managed as the risks are very high specially if there are no developed local exchange markets.
It is also mentioned that, these risks are being centered on the facts of foreign currency, counter financialization, and  nature of the government loans.
The Fitch Ratings Institute has further mentioned that, even though the commercial banks can minimize the risk since they have exporters as their customers, the big companies can manage the risk by controlling the foreign loans to a logical level.

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