Garment exporters seek financial support
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AAA Garment exporters in Tiruppur have appealed to Union Finance Minister to announce measures that will provide financial support to the exporting units.
In a memorandum to the Finance Minister, the Tiruppur Exporters’ Association (TEA) president Raja M. Shanmugham said that major European countries have gone into lockdown. In India, two month lockdown last year had resulted in hike in raw material prices. These factors have affected funds availability to Micro, Small and Medium-scale Enterprises (MSMEs) in the garment sector.
Hence, the government should provide additional 20 % credit outstanding under the Emergency Credit Line Guarantee Scheme to garment units as done to hospitality and tourism sectors. The labour-intensive garment sector is going through financial stress and hence, its needs additional credit support. The Interest Equalisation Scheme, which was extended till June 30, should be ex
Synopsis SMA-1 borrowers in the healthcare sector and 26 other high stress sectors (as identified by the Kamath Committee) are now eligible under ECLGS 2.0, the finance ministry said in a tweet.
Special Mention Accounts (SMAs) are those which are witnessing stress and can become NPAs/stressed assets.
The finance ministry on Friday expanded the scope of the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) which will now cover borrowers from the healthcare segment, apart from the 26 sectors identified by the Kamath Committee. Last month, the government had extended the scheme by three months till June 30 and expanded its scope to cover enterprises in hospitality, travel and tourism, leisure and sporting sectors.
Govt expands ambit of ECLGS 2 0, allows SMA-1 borrowers prokerala.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from prokerala.com Daily Mail and Mail on Sunday newspapers.
Now, even defaulters can borrow more
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Now, even defaulters can borrow more
TNN / Apr 17, 2021, 03:13 IST
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MUMBAI: In a move that will enable even delinquent borrowers to avail of additional bank loans, the government on Friday extended the scope of its Emergency Credit Line Guarantee Scheme to those with repayment overdues of up to 60 days.
The department of financial services said the facility would be available to 26 stressed sectors identified by a committee headed by former ICICI Bank chief K V Kamath. The list includes everything from healthcare, aviation and corporate retail outlets to power, cement, construction and textiles.
The second wave of the coronavirus pandemic poses a risk of asset quality and liquidity issues for non-banking finance companies (NBFC) and these challenges are likely to increase if recent restrictions to contain the pandemic are expanded or prolonged, leading to greater economic and operational disruption, Fitch Ratings said on Thursday.
The rating agency further said that an increase in the rate of infections and broadening of social distancing restrictions pose downside risks to its 12.8 per cent growth projection for the current fiscal.
“India’s non-bank financial institutions (NBFI) face renewed asset quality and liquidity risks amid a second wave of coronavirus infections,” Fitch Ratings said in a statement.