MSMEs seek nine-month extension in moratorium on loan repayments: Report

The ongoing three-month moratorium period ends on May 31

Moneycontrol News

May 20, 2020 / 14:12 IST

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Medium, small and micro enterprises (MSMEs) have requested the finance ministry to consider an extension of nine months in the moratorium on loan repayments. The three-month moratorium already on offer by financial institution ends on May 31.

Acknowledging the measures announced by Finance Minister Nirmala Sitharaman as part of the Rs 20 lakh crore stimulus package, industry associations and trade bodies have asked the Centre to consider pushing the moratorium period for another nine months, The Hindu BusinessLine reported.

Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA) told the paper, “MSMEs are in no position to repay interest … the industry is in dire straits as activities had come to a halt before partially resumed … a revival could take place after six months if issues are addressed one-by-one.”

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He pointed out that not only MSMEs but corporates are also facing a liquidity crisis and would need government support to endure the economic crisis.

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