FM to take up IMF conditionalities

When pointed out that India had 9.1 billion worth foreign institutional investment, Sinha said nowhere in the world the crisis was caused by institutional investors.

No country would feel safe if short term loans were taken for repaying long term loans as was done in East Asia, he said adding excessive shortterm loans were also taken for trade related payments by these countries.

India8217;s short term loans were a mere 5.6 per cent of GDP and hence such a situation is not expected to arise.

This went to show full convertibility of the currency was not the only factor responsible for the East Asian currency meltdown, he said.

On the question of full convertibility of rupee, he said it was not true to say India was going slow on it because of the East asian crisis.

The Tarapore Committee which has recommended a three year time frame for full rupee float had wanted government to fulfill certain preconditions before taking the step.

quot;We have to strengthen fundamentals to fulfil these and once that happens rupee would be made fully convertible,quot; he said but added that government had not accepted the three year time frame recommended by the Tarapore Committee.