In talks with RBI to extend moratorium, restructure loans: FM Sitharaman

Finance minister Nirmala Sitharaman on Friday said that her ministry is working with the Reserve Bank of India on extending the moratorium on loan repayments or restructuring the borrowings.

She said this specifically in the context of the demand by the hospitality sector. “I fully understand the requirements of the hospitality sector on the extension of the moratorium or restructuring. We are working with RBI on this,” she said while addressing members of the industry chamber Ficci.

She also said that the work is going on setting up of the development finance institution. “What shape it will take, we will know shortly,” she added.

Earlier, RBI governor Shaktikanta Das had said that industry must find new ways to fund infrastructure projects as banks struggling with bad loans would not be albe to fund them.

The finance minister also emphasised on reciprocity of trading arrangements with countries with which India has opened up.

“Reciprocity is a very critical point in our trade negotiations,” she said.

Sitharaman also said banks cannot refuse credit to MSMEs covered under emergency credit facility. “If refused, such instances must be reported. I will look into it,” she said.