Hosiery Exporters Seek Extension of Loan Moratorium by 3-6 Months
Tirupur Exporters Association (TEA) on Monday requested Prime Minister Narendra Modi to extend by at least another three months the moratorium on servicing of interest and principal on loans for MSMEs and non-MSMEs which are not big corporates, saying it would take six months for their revival.
Coimbatore, May 18 (PTI) Tirupur Exporters Association (TEA) on Monday requested Prime Minister Narendra Modi to extend by at least another three months the moratorium on servicing of interest and principal on loans for MSMEs and non-MSMEs which are not big corporates, saying it would take six months for their revival.
In a letter to Modi, TEA President Raja M Shanmugham said the COVID-19 lockdown period has been now extended to May 31 and taking into account the global market closure, the industries had not been operational for three months.
The leading global retail stores would reopen only from June onwards and place orders gradually. "Without having any activities and the house totally in disorder, the MSMEs could not repay the interest and principal," he said.
The non-MSME units, which could be categorised just above the MSMEs but not in the league of big corporates such as Reliance Industries and Grasim Industries, had also been facing the liquidity crisis and certainly need government support to tide over the crisis, he said.
"Therefore, we request for extension of the moratorium on servicing of interest and principal at least by three to six months," he said in the letter, a copy of which was released to media here.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)