Base Rate will immensely benefit MSME sectors – FIEO President
22 Oct '09
1 min read
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) welcomed the working Group recommendations to make credit pricing more transparent. He said that long awaited demand of the exporting community about the lack of transparency in the Benchmark Prime Lending Rate is finally being addressed.
The recommendation of the Group, said FIEO President, will immensely benefit MSME sectors which normally get credit at much above rate when compared with corporates and there is cross subsidization for corporates, contrary to popular belief stated, Mr Sakthivel.
Mr Sakthivel welcomed Group observation that there is a need to incentivise export credit for exporters to be globally competitive. If this happens, added FIEO Chief, it will impart 3% to 4% competitiveness to Indian exports.
The recommendation of the Group to disseminate the Base Rate and Range of Actual Lending Rates by Banks would avoid any possibility of unhealthy practice by Bank and will help them to gain debtors' confidence, observed President FIEO.
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