Rs 35,000 Cr debt restructuring package for textile sector

The Centre agreed upon a Rs 35000 crore debt restructuring package to the textile sector. Step is taken to support the textile industry in this moment of crisis. The total outstanding debt of the textiles sector is Rs 1,55,809 crore of which debt of Rs 35,000 crore requires restructuring. Govt would issue directives to Banks to consider Restructuring on priority and case to case basis. The Finance Ministry would examine, in consultation with RBI, a 2-year moratorium on term loans, special provision in NPA norms to avoid asset reclassification and working capital eroded to be converted into working capital term loans repayable over a period of 3-5 years.

Month: Current Affairs - May, 2012