There is no doubt we are currently at the safest position in the region when it comes to debts. There is obviously enough room to accommodate more but we need to be cautious. I think it's more to do with the nature of the loans and the projects they fund rather than the amounts. Also in some cases, I think loans are better than foreign investments because the latter provides other countries with influential access to some strategic installations.
The bilateral laons/credits are a bit tricky though, given the conditions they come with. It would depend on our negotiation skills to make the best use out of them. Inability to generate expected returns would result in the loans turning into burdens. AFAIK, a large part of the Indian line-of-credit worth $2 billion extended by Manmohan Singh still remain to be utilized with several projects being cancelled but we have to pay the interests and other charges regularly right from the day the deal was signed. Not sure about the state of the latest LoC from India.
I'm personally more in favor of loans from multilateral donor agencies like World Bank or ADB, simply because they are more transparent in their proceedings and only fund the 'good' projects with lower rates than others, thus ensuring the desired returns.
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....muh Bengali ABC test STRONK!
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Fake news!
