Exporters call for one-year repayment moratorium

Appreciating the massive liquidity infusion with a slew of measures that the RBI announced earlier in the day, the national exporters body has called for specific steps for the industry since it being the worst hit.

"While the moratorium on all loans repayments for three months and 75 bps cut in interest rates would help exporters as well, the export sector has been the worst hit by the Coronavirus pandemic and would thus need bigger relief.

"The moratorium on loan repayments should be extended at least to 6-12 months for exporters since the global economy is set to be slipping into a recession," EEPC chairman Ravi Sehgal said in a statement.

He said it will be a long haul for exports to resume as almost the entire world is under lockdowns.

"Moreover, it takes years to develop and nurture exports markets and once the supply chain is broken, for whatever reasons, resumption is always challenging," he added.

Sehgal also said exporters are also dealing with double whammy of export controls and import stoppages, bringing their operations to a virtual halt.