Blitz Bureau
NEW DELHI: The proposed RBI regulatory measures, coupled with the credit guarantee scheme for exporters announced by the government, could provide liquidity relief to exporters and help them ride out the near-term pressure on cashflows because of deferment of orders or payments, according to industry experts. The Central Bank has announced several measures to mitigate the impact of trade disruptions on Indian exports “arising on account of global headwinds.”
The RBI eased the burden on debt repayments on specific impacted sectors through moratorium or deferment of payment, and also provided the permission to lenders to recalculate ‘drawing power’ in working capital facilities. The bank has also relaxed repayment of export credit period and lenders are allowed to liquidate packing credit facilities availed on or before August 31, 2025, where dispatch of goods could not take place, through any legitimate alternate sources.
“However, we will have to monitor the extent of moratorium or deferment availed by the exporters. A large quantum of borrowers availing either of relief measures could potentially increase the uncertainty on asset quality for the lenders,” said Anil Gupta, SVP and Co Group Head – Financial Sector Ratings, ICRA. A five per cent provisioning on such loans, where lenders have given a relief to exporters could also result increase in increase in provisions, but unlikely to have a material impact on near-term profitability, he mentioned. The Federation of Indian Export Organisations (FIEO) also welcomed the RBI decision for the extension of export realisation period from nine months to 15 months and extension in period of shipment of goods, on receipt of advance payment against exports, from one year to three years.
