: As Corona disrupts global supply chain, AEPC urges RBI to help apparel exporters manage financial viability #FinanceIndia #StockMarketNEWS As Corona disrupts global supply chain, AEPC urges RBI to

@StockMarketNEWS Wed 18 Mar, 2020

Posted in: #FinanceIndia #StockMarketNEWS

As Corona disrupts global supply chain, AEPC urges RBI to help apparel exporters manage financial viability #FinanceIndia #StockMarketNEWS
As Corona disrupts global supply chain, AEPC urges RBI to help apparel exporters manage financial viability New Delhi, Mar 17 (KNN) The apparel exporters have urged Reserve Bank of India (RBI) Governor Shaktikanta Das to support the sector in managing financial viability as they are facing severe crisis due to Corona Virus outbreak.

The Apparel Export Promotion Council (AEPC) has said that outbreak of the virus has disrupted global value chain impacting both imports and exports.

AEPC Chairman Dr A Sakthivel wrote a letter in this regard to RBI Governor Shaktikanta Das flagging concerns facing apparel exporters due to Coronavirus.

In the letter Sakthivel said, “Apparel trade which is deeply integrated with the global value chain has been impacted by the disruption in both Imports and Exports. Further, this is going to impact the working capital condition of the apparel exporters.”

Requesting immediate relief for the sector, AEPC urged RBI to facilitate faster clearance of banking and packing credit to the industry. Also, as the orders have been postponed by 3 to 6 months, AEPC has requested to extend the packing credit period for existing loans upto a period of 360 days from the existing period of 270 days.

The council has also urged the RBI to extend the bill realization period from 9 months to 1 year (365 days) in view of the liquidity challenges.

The apparel exporters’ apex body urged the RBI to delay declaring companies as NPAs for a minimum of 1 year as the lack of business coupled with fixed cost will make accounts as NPAs.

Among other key demands were exemption from caution listing of exporters by RBI to be extended from March 31, 2020 to March 31, 2021; enhancement in existing limits of Advances for exporters; capping of collateral requirement to 35-40% for lending beyond Rs 2 crores;  extension of Interest Equalization Scheme to all the apparel exporters and not just MSMEs; extension of Interest Equalization Scheme for a period of 2 years to March 21, 2022.

The corona outbreak has hit the domestic and global markets massively. The global supply chain is also incurring heavy losses due to stalled exports and imports. In the wake of this, the MSMEs from across sectors are urging the government and RBI to extend support to them. (KNN Bureau)

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