8 / 23  BIS central bankers' speeches  Finally, the ratio of general government debt to GDP is still high. In 2008 that ratio stood at around 110%. It is now around 180%. The debt path has been strongly affected by the so-called snowball effect – that arises from a combination of interest rates on debt being much higher than growth.
BIS central bankers’ speeches  facility to its clients takes a credit risk on them at the time of entering into such a contract till the time the lease is in vogue, it needs to assess the credit worthiness of the lessee. Presently such vehicle leasing companies are not being regulated by RBI or a financial regulator in India.