Greek crisis might increase borrowing costs for India Inc

It seems India Inc might not be completely shielded from the Greece turmoil after all with borrowing costs may witnessing a spike.

The economic fallout of the Greece crisis might increase cost of money which could mean that Indian companies looking for loans in foreign currency might have to settle for a higher interest rates.

Following the withdrawal of Greece from the negotiations on Friday,THE STOCK MARKETS globally opened week on Monday with the Euro sliding 2% as a result.

Devendra Kumar Pant, chief economist, India Ratings and Diana Monteiro, said, “Although Indian companies have limited direct exposure to Greece, they may feel some pain in the short term since a slew of them have been tapping international markets for cheaper funding relative to home country.”