Apparel exporters write to P Chidambaram on loan restructuring

NEW DELHI: Apex apparel exporters body has written to Finance Minister P Chidambaram and asked him to persuade the RBI to issue necessary directions to banks regarding loan restructuring.

In his letter, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the financial services department has already recommended to the RBI for restructuring of the loans.

In May, Commerce and Industry Minister Anand Sharma, who also has the additional charge of Textiles Ministry, had said that the government had decided to restructure loans worth Rs 35,000 crore.

The total outstanding debt of textiles sector is Rs 1.55 lakh crore.

"...the RBI has not issued directions in line with spirit of the directions given by the financial services department... The industry requests your good offices in directing RBI to issue clear-cut directions in this regard," he said.

The sector has been hit by a sharp fall in cotton yarn prices and poor domestic and global demand. Textile units are facing difficulty in repaying term loans and financing working capital.