Ministry urged to extend moratorium period: CM Biren
Source: Chronicle News Service

Imphal, August 06 2024: In view of the challenges faced by small business operators who have availed loans but are unable to repay them due to the current crisis, the Finance ministry has been urged to extend the moratorium period for another year, informed chief minister N Biren on Tuesday.

Replying to a calling attention motion raised by opposition MLA O Surjakumar regarding the issue of loan non-repayment due to the crisis situation in the assembly, the chief minister acknowledged that the crisis has significantly impacted the state's economy.

Currently, there are 80,000 borrowers from microfinance institutions.

Recognising the difficulties faced by these business owners, RBI initially provided a one-year moratorium on loan repayments.

RBI noted that such relief had never been granted before.

Despite the state government's request to extend the moratorium for another year, RBI declined the appeal.

The chief minister also informed that the Union Finance Minister has been urged to request RBI for an extension of the moratorium period, considering the unrest situation.

During his meeting in Delhi, the chief minister also appealed to the Union Finance Minister for extending support to the borrowers who are suffering due to the ongoing crisis.

There is some hope that RBI may provide some relief to the borrowers.

Nonetheless, the state government will continue to press the Union Finance Minister for intervention and assist those struggling with loan repayment due to the crisis, he elaborated.

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