Finance Minister urged for moratorium on loans for Manipur: CM
Source: The Sangai Express

Imphal, August 06 2024: Chief Minister N Biren Singh today informed the Assembly that he has requested Union Finance Minister Nirmala Sitharaman to persuade the Reserve Bank of India (RBI) to extend the period to repay the loan amounts and interests by another year in the case of Manipur.

Responding to a call attention raised by Congress MLA Surjakumar Okram, the Chief Minister, who holds the Finance portfolio, continued that he met the Union Finance Minister on the sideline of the conclave of the BJP Chief Ministers held at New Delhi recently and informed her about the plight of the people who have taken bank loans.

The RBI may agree to extend the loan repayment duration as the Union Minister assured to look into the matter, N Biren said and added that he, however, could not say anything specific at the moment.

He continued that the unrest in Manipur which began on May 3 last year has taken a heavy toll on the economy and other affairs of the State.

Further stating that the figure of people who borrow from micro financial institutions is about 50,000, the Chief Minister added that the period for loanees to repay the loan amount has already been extended by one year in the interest of people who do small businesses by taking loans.

He said that RBI usually extends loan repayment period by two-three months at the time of natural calamities but extending the same by a year is a rare case.

Saying that RBI rejected their proposal to extend the loan repayment period by another year, the Chief Minister added that the State Government wrote to the Union Finance Minister on August 2 to convince the RBI to extend the loan repayment period by another year as soon as they got the rejection letter.

Raising the call attention motion under Rule 77 of Rules of Procedure and Conduct of Business, Khangabok AC MLA Surjakumar Okram said that the situation in Manipur has greatly affected the business community and the economy of the State.

He also said that the outstanding loan amount which the State has to repay is over Rs 28,000 crore as per a report of the RBI.

Apart from the unrest, Manipur was hit by a series of natural calamities viz catastrophic hailstorm and floods twice recently and the same directly affected those who do small businesses, the Opposition MLA continued.

He further said Manipur has to be declared as a State hit by disaster, disturbance and riot by the Special State Level Bankers Committee to extend the moratorium for loanees.

Stating that the loan recovery rate has decreased drastically in Manipur, he cautioned that the State will face a greater economic crisis if the chain of taking loans on small interest from big banks and investing the money on small entrepreneurs breaks.

He continued that extending the moratorium period won't be disadvantageous to banks as the loanees have to pay the interest over a longer period of time.

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