FinMin, RBI working on need for loan rejig: FM

Says banks can’t refuse credit to MSMEs

FinMin, RBI working on need for loan rejig: FM

Nirmala Sitharaman, Finance Minister. File photo

Tribune News Service

New Delhi, July 31

Finance Minister Nirmala Sitharaman today said the government is working with the RBI on the industry’s need for restructuring of loans.

Addressing the national executive committee meeting of industry chamber Ficci, she said, “The focus is on restructuring. The Finance Ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken.”

The focus is on restructuring. Finance Ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken. —Nirmala Sitharaman, Finance Minister

She claimed that “every step” being announced and taken is taken after exhaustive consultations with the stakeholders and within the government. “We have taken these steps to ensure that the impact is felt on the ground,” she added.

Addressing the concerns raised by the industry on the difficulties faced by the MSMEs in taking loans under the Emergency Credit Guarantee Scheme, Sitharaman said banks cannot refuse credit to MSMEs covered under emergency credit facility.

“If refused, such instances must be reported. I will look into it,” she said.

On the Ficci’s suggestion for creation of a Development Finance Institution, which the government also favours, the Finance Minister said work in this direction was going on. “What shape it will take, we will know shortly,” she said.

The Finance Ministry is working with RBI on the demand of the hospitality sector for extension of moratorium, or restructuring. “I fully understand the requirements of the hospitality sector on the extension of the moratorium or restructuring. We are working with RBI on this,” she said.

Ficci president Sangita Reddy appreciated the government’s proactive approach in dealing with the situation.

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