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FinMin, RBI working on need for loan rejig: FM

Finance Minister Nirmala Sitharaman today said the government is working with the RBI on the industry’s need for restructuring of loans.

Addressing the national executive committee meeting of industry chamber Ficci, she said, “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 claimed that “every step” being announced and taken is taken after exhaustive consultations with the stakeholders and within the government. “We have taken these steps to ensure that the impact is felt on the ground,” she added.

Addressing the concerns raised by the industry on the difficulties faced by the MSMEs in taking loans under the Emergency Credit Guarantee Scheme, 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,” she said.

On the Ficci’s suggestion for creation of a Development Finance Institution, which the government also favours, the Finance Minister said work in this direction was going on. “What shape it will take, we will know shortly,” she said.