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Hosiery exporters seek extension of loan moratorium by 3-6 months

Business Finance

Press Trust of India  |  Coimbatore 

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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 18 2020. 17:53 IST