Tirupur exporters body hails RBI's move permitting loan restructuring

Tirupur Exporters' Association (TEA) Wednesday hailed the decision of RBI to permit one-time restructuring of existing loans not exceeding Rs 25 crore to micro, small and medium enterprises (MSMEs). In a statement here, TEA president Raja M Shanmugham said the restructuring of loans would be a big relief to financially-stressed knitwear exporting units in Tirupur. The units were affected by demonetisation and implementation of goods and services tax (GST) apart from prevailing adverse factors, he said.

The association has also been representing to the Ministries and RBI to treat MSMEs separately and exclude them from following Basel III norms which are meant for corporate units, he said. While mentioning the positive trend in garment exports in October-November, Raja Shanmugham said this kind of restructuring would be helpful to the concerned MSMEs in exports business to get revived and continue in the trade.

(With inputs from agencies.)