RBI to decide on loan restructuring for Hospitality & Tourism. The government is holding discussions with the central bank for decisions relating to economy revival and restructuring of stressed loans. The current pandemic has forced many MSME’s. To force their way out of the market and a set of measures. Which is expected to bolster up their sustainability. Therefore, RBI is till to decide on the same.
“Sectors such as tourism, hospitality and aviation have been crippled by the lock-down. There could be a one-time restructuring relief measure for these sectors. The RBI is looking into it,” a senior government official told Moneycontrol.
Finance Minister Nirmala Sitharaman had said. Which was in the Budget speech. The government has asked the RBI to extend permitted restructuring window. Furthermore, from March 31, 2020 to March 31, 2021. However, the banking sector is in high probability to see a spike. In Non-performing Assets (NPAs) in the current pandemic. Thus lowering EBITDA of the NBFCs, HFCs and other banking institutions.
Moreover, the Indian Banks’ Association (IBA). And other bodies has made representation to the government and RBI . Also, for one-time loan restructuring option to deal with the issue of NPAs.
Recently, Reserve Bank of India has granted a 3-month loan moratorium to credit-takers. This move was highly commended by the people in the event of mass unemployment and liquidity shortage.
Special liquidity scheme for NBFCs/HFCshttps://t.co/xlLTkvmKOb
— ReserveBankOfIndia (@RBI) July 1, 2020
