Finance Ministry is seriously deliberating with RBI on loan re-structuring
New Delhi: Government may extend the term of loan moratorium. Finance Minister Nirmala Sitharaman said on Friday that the government is considering re-structuring term loans and extending their moratorium period with the RBI. Banks cannot refuse to give loans to MSMEs under the Emergency Credit Line Guarantee Scheme. If a bank is reluctant to give a loan, it should be reported. Our focus should be on the re-structuring of loans.
The Finance Minister said that his ministry is seriously deliberating with the RBI on re-structuring. In a meeting with FICCI, the Finance Minister said that discussions are going on on the idea that there should be re-structuring.
Bankers protested, said not to extend the period of the moratorium
On the question of granting loans to MSME, Sitharaman said that banks have given 43.5 per cent loan out of Rs 3 lakh crore earmarked for MSMEs.
However, now the banker and the government are face to face regarding this matter. SBI Chairman Rajneesh Kumar has said that extending the period of moratorium from August onwards will not be right. He said that most banks believe that the loan waiver period should not exceed 31 August. We believe that six months is enough time to allow you to repay the loan.
SBI Chief said, extending moratorium period is not good
Before Rajnish Kumar, HDFC Chairman Deepak Parekh had also said that the moratorium period should not be extended further. Parekh had told RBI Governor Shaktikanta Das that the period of the moratorium should not be extended further. Some people do not repay the loan even though they are in a position to repay the loan.