Derivatives: Exporters reject ICICI help

The response comes after India's second largest bank proposed conversion of a part of the losses into long-term loans, or alternatively, put "restructures".

In a letter to ICICI Bank managing director (MD) and chief executive officer (CEO) K V Kamath, Tirupur Exporters' Association (TEA) president A Sakthivel has instead asked the bank to share 75 per cent of the losses suffered by exporters in the "Banian town". In his letter, Sakthivel has mentioned the two options that were put forward by the bank.

When contacted, an ICICI Bank spokesperson said, "We would not like to discuss our clients and their businesses." On his part, Sakthivel first denied any knowledge of the letter but later said that the letter was "not meant for the press".

TEA has stated in the letter that converting losses into long-term loans would not work with many exporters as they were finding servicing of existing loans itself very difficult.

"If further burden is put on them, they may default in repayment of instalments/interest of the existing loans also," the letter said.

On the possibility of putting