Indian poultry industry gets a breather from bird flu
The Reserve Bank of India (RBI) has asked banks in the
country to reschedule loans given to the poultry units across the
India has been rattled by bird flu that has shaken the poultry industry
over recent weeks. The rescheduling of loans from banks therefore comes as a
huge relief to the industry.
While thousands of birds have been destroyed in the bird flu-infected West
Bengal, thousands of poultry farmers, mostly in Andhra Pradesh and Tamil Nadu,
have lost huge sums of money due to fallen demand.
This led RBI to inform Chairmen, Managing Directors and Chief Executive
Officers of all scheduled commercial banks to give a breather to the poultry
industry. It asked the banks to convert principal and interest due (on working
capital loans), instalments and interest on term loans due for payment on or
after the onset of bird flu into term loans.
â€œThe process may be completed by April 30, 2008,â€ said G. Srinivsan, Chief
General Manager of RBI. â€œThe converted loans may be recovered in instalments
based on the projected future inflows over a period up to three years with an
initial moratorium of up to one year. The first year of repayment may be fixed
after the expiry of this moratorium.â€
After conversion, the borrowers would be eligible for fresh need-based
finance. The relief would be extended to all accounts of poultry industry, which
are classified as 'standard accounts' as of the cut-off date.
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