MSMEs get Interest Equalization

The Federation of Indian Export Organizations (FIEO) wants banks to move proactively to increase the flow of export credit.

Making the call, FIEO President Ganesh Kumar Gupta pointed out that the August export credit had dropped by about 50% from August 2017.

The outstanding export credit in August 2017 was Rs.415 billion which dropped to Rs.205 billion in August 2018.

He appreciated the move to have a meeting with the bankers so as to impress upon them the need for timely credit and expeditious renewal of limits.

He also hailed the announcement for increasing the Interest Equalization from 3% to 5%.

“This is very timely move and will help the exporters to get credit at competitive rates close to international benchmark.

“Coming at a time when interest rates are moving northwards, the deeper support of 5% would provide much needed relief to MSME exporters who were burdened by increasing cost of credit.

“This move shows that government is very keen to lend a helping hand to MSME to boost exports and create jobs in the country,” said Gupta on 2 Nov 2018. fiinews.com