Announcements: RBI Governer Press Conference

1. Term loan moratorium extended till August 31, 2020 – The loan moratorium will be extended till August 31, 2020. This makes it a six months moratorium.

2. Deferment of Interest on Working Capital – Interest on working capital is deferred by another 3 months i.e. till 31st August 2020.

3. Conversion of Interest on working capital to interest term loan – Lending institutions are being permitted to convert the accumulated interest on working capital facilities over the deferment period (up to August 31, 2020) into a funded interest term loan (Repayable before 31st March 2021).

3. The margin for Working Capital – Drawing Power – Lending institutions are being permitted to restore the margins for working capital to the original level by 31st March 2021.

4. Reduce the repo rate by 40 bps to 4 percent. Accordingly, the Interest rate would be reduced.

5. Export Credits – Maximum permissible export credit (Pre and Post Shipments) extended from 12 months to 15 months.

6. Payment against Imports – Extension of time limit for making payments against imports from 6 months to 12 months

7. Support to EXIM Bank – Facility of Rs 15,000 crore line of credit for 90 days for US dollar swap facility will be provided to EXIM Bank.

8. Extension of Resolution Timelines – Deferment or moratorium period shall be excluded while calculating 180 days resolution period.

9. Group Financing – Group exposure extended from 25% to 30%

10. Support to SIDBI- In order to provide greater flexibility of SIDBI, another 90 days extension for the 90-day term loan facilities will be offered.

11. Assets Classification – Loan Moratorium shall not have any implications on changes in assets classification, credit history, and aging norms, etc.

12.Trade Impact – Volume of world trade can shrink by 13%-32% this year.

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