RBI support measures to give more liquidity to exporters: FIEO

Mumbai, May 22 () Exporters, one of the worst hit organized sectors, have hailed the policy rates cut, extended loan repayment moratorium along with pre- and post-shipment credit extension by the Reserve Bank saying these much-needed steps will help them recover from COVID-19 disruptions.

The Reserve Bank on Friday cut the repo and the reverse repo rates to 4 per cent and 3.35 per cent respectively, extended the loan moratorium period till August 31 from May 31, and also extended the pre-and post-shipment credit for exporters from the existing 12 months to 15 months.

National exporters lobby Federation of Indian Export Organisations (FIEO) president Sharad Kumar Saraf said these measures will give more liquidity to exporters thus helping them in fulfilling their overall obligations during these testing times.

"We are ushering into an era of very competitive credit rates to help manufacturing and overall economy," he said, adding, "these measures will not only help revive growth but will also help in mitigating the impact of the pandemic."

On time for outward remittance for imports being extended from six months to 12 months, he said this will help importers as now they get longer repatriation period.

The Rs 15,000-crore dollar swap facility by way of line of credit to the Exim Bank will help leverage long term finance and project exports as a marketing tool, Saraf said.

He reiterated his call to the government to immediately announce an export package covering all sectors of exports and implementation of the economic measures announced at the ground level for quick and early starting of trade and businesses. BEN DRR DRR