Kochi: The state government would request banks to declare a moratorium on loan repayment besides fresh working capital disbursal for industry and trade in view of the devastating floods in the state. The government is also expected to raise the issue with the Union Finance Ministry.
If the bankers decline to show leniency at this hour of peril many of the small and medium enterprises in the state would face serious difficulties, said Dr. K.N. Harilal, a member of the State Planning Board. He said the farming sector in the state would also require help from bankers.
The small and medium industries in eight districts in the state have suffered huge damages following the floods.
The government may soon request for a meeting with the State Level Bankers Committee (SLBC) to work out the modalities for a repayment moratorium and infusion of fresh working capital.
The farming sector will also require helps from the bankers to tide over the crisis due to the huge crop losses suffered by farmers in places such as Wayanad, Idukki and central Kerala.
The anti-Sarfaesi People's Movement has urged the central and state governments to freeze all attachment proceedings in view of the devastation caused by the flood situation. A long time will be needed to reorganise trade, agriculture and dwelling units, VC Jenny convener of the Movement said in a statement on Tuesday.
