Page 227 - ES 2020-21_Volume-1-2 [28-01-21]

210 Economic Survey 2020-21 Volume 1

Figure 11: NPA trends for Early Resolvers vs Late Resolvers

Source: IMF Financial Soundness Indicators

Table 3: Difference in post and pre-crisis GDP for Early Resolvers vs Late Resolvers

Average GDP growth rate (in %) Average GDP growth rate (in %)
Early Late
Resolvers Pre-crisis Post-crisis Resolvers Pre-crisis Post-crisis
1998-07 2008-19 Difference 1998-07 2008-19 Difference
Australia 3.59 2.53 –1.06 Argentina 2.82 0.99 –1.83

Brazil 2.99 1.57 –1.42 China 10.01 7.97 –2.04

Canada 3.19 1.66 –1.53 India 7.16 6.85 –0.31
Germany 1.63 1.22 –0.41 Italy 1.51 –0.32 –1.83

Indonesia 2.81 5.54 2.73 Russia 5.85 1.44 –4.41

South Korea 5.18 3.08 –2.11 Turkey 4.38 4.55 0.17
Saudi Arabia 3.01 3.23 0.21 Portugal 2.1 0.43 –1.68

South Africa 3.73 1.54 –2.19

United States 3.11 1.70 –1.41
Average 3.25 2.45 –0.80 Average 4.83 3.13 –1.70

Source: IMF

7.9 The following sections explore in detail the consequences of a prolonged forbearance
policy. The discussion is divided into four broad sections. The first section discusses the impact
on lending practices of banks, the second section highlights the impact on the borrowers, the