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Exporters in the Tirupur knitwear cluster have hailed the RBI decision to permit one-time restructuring of loans to MSMEs.
Reacting to the banking regulator’s announcement, Raja M Shanmugham, President, Tirupur Exporters’ Association, said the one-time restructuring of loans (not exceeding ₹25 crore) will bring huge relief to the financially stressed exporting units. A good number of knitwear exporters were impacted by demonetisation, followed by the implementation of the GST. The Association has been making representations to the ministries and the RBI for treating MSMEs separately and excluding them from following Basel III norms meant for corporates.
“This one-time restructuring of loans will give the units some breather,” he said and pointed out that the garment export trend continued to remain positive at the fag end of 2018. This decision will help the MSMEs, he added.
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