MUMBAI, 20th MARCH, 2020 (GPN):  With the outbreak of the COVID-19 pandemic, economies and financial markets across the world is into a tailspin. The need of the hour is to continue with the innovative steps and deliver growth supportive measures to support financial markets and the real economy through coordinated policy actions. ICC has conducted a quick survey among its members and following suggestions were offered by the industry which have been shared with the Government of India for consideration.

§  Need of the hour is a stimulus which can increase the spending power of consumers.

§  To allow all companies option to restructure loans for one year without any additional charges by Banks for provisioning etc.

§  RBI may relax NPA norms for 6 months, so that no default will be eligible for being termed as a NPA account.

§  Banks may be advised to enhance working capital limits upto 20% of existing limit to ensure funding of inventory piled up. This will be subject to Companies being able to provide sufficient Drawing Power to banks.

§  To allow interest subvention on all working capital limits by 2% per annum to all industry players without exception for 6 months to balance the extra interest cost due to pressure to hold extra inventory.

§  Indian companies must be protected to ensure that job losses do not happen. For that RBI may allow 1 year moratorium to corporates to allow them enough time to manage cash flow until the crisis blows over.

§  A mortgage holiday for a specified period of 1 year.

§  Suitable cut in policy rates so that consumption and investment do not come to a standstill

§  Decrease of GST rates across the board

§  To decrease fuel prices

§  To give specific relief to the sectors like Travel & Hospitality, Retail, entertainment etc. directly affected by the Coronavirus

All the above requested measures are temporary till the global markets stabilise in 3 to 6 months and will give a boost to the economy. ENDS