Mr. Satish Magar, President, CREDAI National statement on RBI’s announcement today
We expected more stringent measures from the RBI booster to revive the economy. Real Estate sector can act as a catalyst in resurrecting the economy, backed by stringent fiscal and non-fiscal measures. The move of moratorium extension is a short term piecemeal solution to a long term problem.
The interest rate should be reduced with firm liquidity measures as this is the need of the hour backed by one -time restructuring of loans to help the real estate sector from crumpling. RBI has tried to ease the pressure on borrowers and has extended group exposure limit for lenders to corporates from 25% to 30 % but this is not enough to solve the ongoing liquidity crisis.
Government now needs to ensure that banks are forthcoming and are passing on the benefits to us currently, there is a dearth of income in the sector owing to the COVID crisis. Real estate industry remains the second largest employer after agriculture and prolonged slowdown in the sector will have a direct impact on survival of 269 allied industries hence, it is critical for the Government and RBI to take immediate measures to provide economic relief.