INSUBCONTINENT EXCLUSIVE:
Finance Minister Nirmala Sitharaman was addressing a FICCI meetingThe government is working with Reserve Bank of India (RBI) on the
industry's need for restructuring of loans to absorb the adverse impact of COVID-19 pandemic, Finance Minister Nirmala Sitharaman said on
"The focus is on restructuring
The Finance Ministry is actively engaged with RBI on this
In principle, the idea that there may be a restructuring required is well taken," she said while addressing the national executive committee
meeting of Federation of Indian Chambers of Commerce and Industry (FICCI)
Ms Sitharaman said every step being announced is taken after exhaustive consultations with the stakeholders and within the
government.Addressing the concerns raised by FICCI members on the difficulties faced by micro, small and medium-scale enterprises (MSMEs) in
taking loans under the Emergency Credit Guarantee Scheme announced by the government, Ms Sitharaman said banks cannot refuse credit to MSMEs
covered under emergency credit facility."If refused, such instances must be reported
I will look into it," the finance minister said
She also said that work is going on the development finance institution.Stressing on the need for reciprocity in trade deals, Ms Sitharaman
said: "Reciprocal arrangements are being asked with the countries, with which we have opened up our markets
Reciprocity is a very critical point in our trade negotiations."The Finance Minister said the decision of reducing GST rates on healthcare
and other products will be taken by the GST Council.Ms Sitharaman said the Finance Ministry is working with RBI on the demand of the
hospitality sector for extension of moratorium or restructuring
"I fully understand the requirements of the hospitality sector on the extension of the moratorium, or restructuring
We are working with RBI on this."FICCI President Sangita Reddy appreciated the government's proactive approach in dealing with the
situation."While the green shoots of recovery are being seen, sustaining this improvement in operational parameters of businesses will
require continuous support from the government
The support is particularly needed in the realm of strengthening market demand and to boost demand, she said.
