EEPC India wants moratorium on loan to be extended to six months to one year

While the moratorium on all loans repayments for three months and 75 basis points cut in the interest rates would help exporters as well, the export sector has been the worst hit by the outbreak of coronavirus and would thus need bigger package of relief. The moratorium on loan repayments should be extended at least to six months to one year for exporters, since the global economy is set to be slipping into a recession, said EEPC India chairman Ravi Sehgal.

With lockdown in almost all major economies of the world and the operations coming to a standstill within our own country, it is going to be a long haul for the exports to resume. Moreover, it takes years to develop and nurture exports markets and once the supply chain is broken , for whatever reasons, resumption is always challenging.

"Besides, exporters are dealing with double whammy of export controls and import stoppages , bringing their operations to a virtual halt," said Mr Sehgal.