FM Sitharaman: Finance Ministry working with RBI on loan recast, moratorium extension

On concerns raised by FICCI members in raising loans under ECLGS, Nirmala 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.”

Finance Minister Nirmala Sitharaman. (PTI)

Finance Minister Nirmala Sitharaman Friday has said the government is working with the Reserve Bank of India on restructuring of loans and extension of moratorium on term loans. Banks cannot refuse credit to MSMEs under the emergency credit line guarantee scheme and any refusal should be reported, she said.

“The focus is on restructuring. Finance Ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken,” she said in an interaction with FICCI, as per a statement issued by the industry chamber.

On concerns raised by FICCI members in raising loans under ECLGS, she said “banks cannot refuse credit to MSMEs covered under emergency credit facility. If refused, such instances must be reported. I will look into it.” Banks have sanctioned 43.5 per cent of the targeted Rs 3 lakh crore under the ECLGS for stressed MSMEs as of July 23, official data show.