Nabard considers loan waivers a bad idea

Chairman Harsh Kumar Bhanwala told reporters that debt waivers only create moral hazards from the point of view of a credit repayment. This statement came a week after the government of UP announced a farm loan waiver package of Rs 36,000 crore. The National Bank for Agriculture and Rural Development (Nabard) said that these loan waivers should be given only to the needy. He said that every loan waiver leads to tax payers’ money being used to bail out the farmer.

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