Kerala CM writes to Nirmala Sitharaman, seeks moratorium extension till December

THIRUVANANTHAPURAM: The state government has demanded extension of moratorium on all loans till December 31. Chief minister Pinarayi Vijayan on Sunday wrote a letter to Union finance minister Nirmala Sitharaman, requesting her to direct the Reserve Bank of India to extend the moratorium.
The RBI had announced moratorium on all loans -- including home, industrial and agriculture loans -- till August 31 and the government decided to write to the Centre as there was no announcement on its extension.
“Industrialists in the MSME (micro, small and medium enterprises) sector and small traders are still struggling. There is a visible liquidity crunch. It is important to continue the moratorium for a few more months. We suggest extending the moratorium till December,” Vijayan said.
Several organisations of industrialists and traders had taken up the matter with the state government. “The interest during the moratorium period is another challenge they face... We have also requested schemes to provide relief in terms of interest,” the CM said.
Sources said the government was also considering schemes for those who had taken loans from co-operative banks in the state and a decision on this would be taken after getting a reply from the Centre.
Congress working committee member and former chief minister A K Antony also demanded extension of the moratorium. “The economic crisis caused by Covid-19 is worsening day by day. People haven’t recovered from the crisis yet. In these circumstances, it is important to extend the moratorium for some more months,” he said, adding that the Centre should also bear the interest on loans during the moratorium.