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disadvantages are the increase in default risk, bankruptcy risk, and a plethora of interest rate and market risks related to having more debt on a company's balance sheet. having more debt may increase your actual cost of borrowing, ie. the intrest rate paid on the debt. with public companies, the ratings agencies will see the additional debt burden and possibly lower the company's rating, which automatically boosts borrowing costs. this could have a downward spiraling effect on the company as its borrowing costs go up, but suddenly less capital is available to draw from due to the lower credit rating. in the case of a liquidity crunch, this can dramatically increase the risk of bankruptcy.
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Can you explain External Commercial Borrowings and From where to start and Name of competent authority?
NO!
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io
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External Commercial Borrowings (ECB) are defined to includecommercial bank loans,buyer's credit,supplier's credit,securitised instruments such as floating rate notes, fixed rate bonds etc.,credit from official export credit agencies,commercial borrowings from the private sector window of multilateral financial institutions such as IFC, ADB, AFIC, CDC etc. andInvestment by Foreign Institutional Investors (FIIs) in dedicated debt fundsApplicants will be free to raise ECB from any internationally recognised source like banks, export credit agencies, suppliers of equipment, foreign collaborations, foreign equity - holders, international capital markets etc. Offers from unrecognised sources will not be entertained.
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zzz
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lost of pieces
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What are the internal and external environment of commercial bank organisation?
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