KKR & Co. has become the India’s first Foreign-Owned Asset Reconstruction Company (ARC). It is associated to which country?
[D] New Zealand
US buyout giant Kohlberg Kravis Roberts (KKR) & Co. has become the first foreign investor to fully own an Asset Reconstruction Company (ARC) in India as it received approval from the Reserve Bank of India (RBI) at a time when lenders are fighting with a pile of bad loans that have crippled their businesses. KKR is one of the most aggressive investors in financial services. It has plans to deploy a major chunk from its record Asia fund for buying troubled assets in the country, multiple sources with direct knowledge of the matter. Its headquarters is located in New York, United States. An ARC is in the business of acquiring Non-Performing Assets (NPAs). The Banks and an ARC get into an agreement in which the ARC take over the NPAs from the Banks Balance Sheet at a certain amount, lower than the Book Value. After this process, the particular ARC tries to recover this amount from the borrowers.