AEPC seeks extension of loan moratorium till March 2021

In a letter to Finance Minister Nirmala Sitharaman, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said "given the continued lockdowns, the situation of the global apparel scenario and the fact that revival of the industry is yet to take place to the pre-COVID period, I request for the extension of this facility till 31 March 2021." The RBI had announced the loan moratorium to provide relief to borrowers amid the COVID-19 crisis.

Apparel exporters' body AEPC on Monday urged the government to extend the moratorium on payment of instalments for term loans till March 2021 considering the slowdown in business. In a letter to Finance Minister Nirmala Sitharaman, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said "given the continued lockdowns, the situation of the global apparel scenario and the fact that revival of the industry is yet to take place to the pre-COVID period, I request for the extension of this facility till 31 March 2021." The RBI had announced the loan moratorium to provide relief to borrowers amid the COVID-19 crisis. "For the apparel exporting sector, the export trends are yet to show signs of full recovery. Apparel exports have declined by 91.04 per cent in April, 66.19 per cent in May, 34.84 per cent  in June and 22.09 per cent  in July, 2020," Sakthivel said. This is largely due to the fall in global demand and the sector's heavy dependence on Western markets where retail sales are yet to pick up, he added.  In fact, the industry is still facing a lot of defaults due to bankruptcy filings by big brands and buyers, delayed export realisations and inability to restore manufacturing at the pre-COVID-19 capacities, he noted. He made a similar request to RBI Governor Shaktikanta Das, saying the decision will help mitigate the suffering of the industry and millions of workers.