Such a process is especially vital in an economy like India where traditionally credit contracts have been embedded with cross obligations and credit mitigating covers provided by parent and group companies of the borrower. In such a system, default by a borrower is likely to spur cross defaults by group companies thereby increasing the overall credit risk to the financial system.
*  *  *  Mr. Chairman and members of the committee, I am pleased to be here today to offer my views on the state of the U.S. economy and current fiscal issues. I speak for myself and not necessarily for the Federal Reserve.