Moreover, a significant part of the debt flows during the late 1980s was of shortterm nature in the form of bankers’ acceptances; such flows could not be renewed easily in view of the loss of confidence following the balance of payments crisis.
Growing fiscal imbalance and correction With the increase in the SLR being unable to meet fully the fiscal requirements, the burden of financing the Government had also to be borne by the Reserve Bank which led to high levels of monetized deficit.