RBI’s plan for one time restructuring of loans will help soften the impact of Corona to facilitate revival of realty.
RBI is currently mulling a proposal to offer one time loan recast for financially stressed real estate firms. The apex bank’s strategy is to first assess the quantum of stressed loans before going in for loan restructuring. Industry, particularly the real estate sector has been seeking loan recast to come out of Covid crisis . RBI is considering whether loan recast relief should be provided to all or restricted to more stressed sectors like realty.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, “The capital intensive real estate sector has been severely hit. Due to tepid sales, financially stressed developers have been finding it difficult to service their loans and complete their projects. As such RBI should accept the realty sector’s long pending demand of one time loan restructuring. The loan recast will help facilitate last-mile funding for projects. And this in turn will provide momentum to real estate revival.