TIRUPUR: The acting chairman, Apparel Export Promotion Council  (AEPC), Mr. A Sakthivel has urged the Centre's intervention to protect MSME industries which are struggling due to stressed loan accounts.

According to A Sakthivel, Finance Minister Nirmala Sitharaman announced that banks will not declare any stressed loan accounts of MSMEs as NPAs till March 2020.  He said, “The minister said that several MSMEs want one-time settlement of their outstanding dues which should be settled expeditiously by the banks.  She pointed out that government wants banks to recast MSME loans instead of declaring it NPAs.”

He said, “In spite of the Finance Minister's instructions, banks are currently announcing NPAs of such accounts and are showing lack of interest to recast MSMEs debts. They are also reluctant to pass on the benefit due to various repo rate cuts to customers. This is a hurdle to attain the desired growth in business and the economy.” He requested the Finance Minister to pass necessary orders to insist that all banks follow the circular and support MSMEs. 

Published On : 16-10-2019

Source : Deccan Chronicle