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TUESDAY, NOVEMBER 24, 2009
No end seen to liquidity woes for India’s real estate developers
Most developers rely on banks for funds, and are bearing the brunt of RBI’s directive to curb lending to the sector
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I think the article is very well placed. To add to it....One more problem which is faced by developers is that, they have already loans from the banks for their earlier planned projects. Now, as the Interest rates are piling up, they are forced to come up with their projects and take further risks, considering the present market conditions. It is a very typical situation, where they have got themselves into, and probably now developing new infrastructures in planned way, may be integrating their projects with Service sector industry and their requirements may not be bad idea. But definatly a tough situation for them and convalescence would not be easy...
Achal
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