Developers Demand One-time Loan Restructuring
Realtors body NAREDCO has sought from the government one-time restructuring of loans and last-mile funding for stalled projects to save the realty sector from the liquidity crisis triggered by the pandemic. NAREDCO submitted a memorandum containing various expectations of real estate sector from the government to meet the challenges caused by the pandemic and the prolonged lockdown. Developer’s body urged the minister to direct RBI to implement one time rollover/restructuring of project loans disbursed by banks and financial institutions. The need of last-mile funding to complete the stalled projects was also discussed by the delegation, Arora said, adding that there are more than 4,000 projects that need such funding. NAREDCO suggested that existing lenders should be directed to provide the last-mile funding on the lines of SWAMIH fund. In 2019, the Centre set up Rs 25,000 crore stress fund SWAMIH to complete stalled projects. The association also informed the minister about the problems being faced by real estate sector due to proceedings being initiated against them under Sections 7, 9 and 10 of the Insolvency & Bankruptcy Code (IBC). In March 2020, when the pandemic struck, the enforcement of these sections was suspended for a period of one year which expired in March 2021 The finance minister assured the delegation to consider these demands sympathetically, the association said.
Tags : News/Views Developers Real Estate NAREDCO construction RBI Loan Restructuring Demand SWAMIH Fund One-time