Restructuring loan accounts Govt’s responsibility: KEF

Kashmir Economic Forum has appealed state government to pursue the matter relating to restructuring of loan accounts with Union Finance Ministry to help Valley business community in this hour of crisis.
Restructuring loan accounts Govt’s responsibility: KEF

Kashmir Economic Forum has appealed state government to pursue the matter relating to restructuring of loan accounts with Union Finance Ministry to help Valley business community in this hour of crisis.

In a statement here today, KEF said it is government's responsibility to ensure restructuring of stressed loans in Kashmir.

KEF chairman Showkat Chowdhary urged state government especially the finance minister to approach union finance ministry for the restructuring of the loans.

"State government should make a comprehensive proposal for restricting of the loans and submit it to RBI and union finance ministry. It will ease the business community whose economic activity has come to a grinding half for past five months," said Chowdhary.

"The businessmen here were already reeling under the losses suffered during 2014 floods. J&K Bank extended moratorium period of two years for repayment of loans by the flood affected. On the same pattern, RBI should allow the banks here to restructure the loans to save accounts going to NPAs," he said.

On November 15, RBI rejected the J&K State Level Bankers' Committee's plea of restructuring the loans. It said state government had failed to declare any district or area of the State as "affected by riots or disturbances."

The past about five months of curfew and shutdowns have turned around 2 lakh loan accounts into stressed accounts due to borrowers' inability to pay Equated Monthly Installments (EMIs) on time. GKNN

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