The Tirupur Exporters Association (TEA) has requested the Reserve Bank of India (RBI) to advise banks to sanction a moratorium on repayment of term loan and its interest, among other relief measures, for the Tirupur knitwear exporters to help them bail out of the operational crisis experienced. TEA president A Sakthivel, in a representation to the RBI Governor D. Subbarao, pointed out that the predominant small and medium scale exporting units in the cluster had been reeling under severe financial problems as demands in the United States and European markets shrunk due to the present recessional trend. Besides this, the industry is yet to recover completely from the crisis experienced following the closure of dyeing units. According to Mr. Sakthivel, the financial troubles have been worsening every day and chances of loans taken by more number of units getting categorised as NPA (non performing assests) at the end of the second quarter of the current financial year are more. In the scenario, the exporters wanted the banks to restructure the loans without any additional provisions apart from the demand for the moratorium.
HBL
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