Focus of export credit should be on SMEs: President, FIEO

27 Apr '09

1 min read

For focussing on SMEs exporters, RBI should list down all the banking facilities for this segment in one chapter so as to made them aware of the benefits as lack of knowledge is a bane for small and medium enterprises.

Reduction in repo rate and reverse repo rate has not resulted in reduction in the PLR of most of the banks, said Shri A. SAKTHIVEL, President FIEO.

Exporters have not been able to get exports credit at the reduced rate of interest and there is an urgent need to provide export credit at 7% without linking it with the PLR as our competitors are providing exports credit at less than 5% and Indian exporters are required to provide a near level playing field.

Banks also need to be advised to restructure the term loan given to exporters in the wake of present financial crisis, added FIEO Chief.

The issue of derivative losses remains unattended for long time and we request RBI to intervene to help the exporters to settle the matter amicably on 50:50 basis so that exporters do not suffer irrecoverable losses, observed Shri Sakthivel.

Federation of Indian Export Organisations

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