Tourism industry seeks loan moratorium

Jaipur: The hospitality and tourism sector has written to finance minister to allow them restructuring of their loans including moratorium on repayments as their units remains closed due to the lockdown.

Representatives of the industry said they were unable to service their loans because their units have not been generating any business income for nearly one-and-a-half year barring few months starting from December to February.

“What we want is a moratorium on repayments for two years. When you don’t have business for a year, where will you get the money to pay the money to banks,” said Surendra Singh Shahpura, executive member of Federation of Hospitality and Tourism of Rajasthan.

While RBI has released guidelines on May 5 for restructuring of loans taken by Micro, Small and Medium Entreprises (MSMEs), majority of the banks are yet to offer the facility to the companies in need.

But a senior SBI, Jaipur official said that their board has issued a circular listing the conditions where the MSMEs can be offered the restructuring window.

“There are guidelines for restructuring loans up to two years. We are in touch with our borrowers and whoever qualifies, the moratorium will be offered,” said the officials.

But not boards of all banks have decided on the parameters.

Abhishek Mishra, director of a realty firm in the city said, “Private banks are yet to decide on any kind of moratorium. In the meanwhile, we are required to pay EMIs. If we don’t pay, our accounts will be classified as NPA.”

Trade bodies like Federation of Rajasthan Trade and Industry (FORTI) has already appealed to the Centre to announce a relief package for the MSMEs which have been severely hit by the pandemic.

According to industry sources, the Centre is working on a plan to offer relief to the hospitality sector. In the Atmanirbhar relief packages last year, the sector was given a raw deal.