Loan restructuring

With life returning to normal after more than four months of unrest in valley, efforts are afoot to restructure the shattered economy of the valley that has taken a heavy toll during the unrest. The industry estimates reveal that the businessmen suffered a daily loss of Rs 100 crore in the unrest period here, primarily due to strike, curfews and internet blockade. In view of the prevailing situation, when the cash flow of traders and business units has dried up, it is difficult for them to pay the old loans. The pressure by banks seeking recovery of old loans has been a new concern for the common man particularly the business community. In the given stressful situation when the business community is still recuperating from huge losses, the government should intervene to provide interest subvention or issue a moratorium on the payment of loans. The government and the banks should help spur the economy and avoid any such measures that will shrink it. The government plans of stopping the loans to those who have failed to clear the already accumulated debts will only have serious repercussions on the overall economy of the Valley and will further push the people to wall.  There is certainly an improvement in situation, but the gains made in last few weeks need not to be wasted and ignoring the genuine demands of people like the restructuring of loans could be prove major detrimental for the return of the complete normalcy. Initiatives of Fiance minster Dr. Hseeb Drabu to seek centers intervention after RBI’s refusal to restructure loans is a welcome step but it is yet to be seen whether the state government was serious enough to put pressure on New Delhi to take a stand on it.