When the crisis hit, followed by a global recession, an expansionary fiscal policy was once again adopted, and this time it was particularly intense, despite the imbalances hitherto accumulated and the absence of fiscal space. In 2010, the budget deficit was above 11% of GDP and gross public debt was around 100% of GDP.
This can compel these banks to participate in large infrastructure and project credits through Securitisation after the project has taken off, rather than participating through consortium or multiple banking arrangement before the cash flows have emanated. 33. For these to happen, there is a need for a change in the mind set and attitude of banks and financial institutions, including the NBFCs. 34.