Hospitality industry demands loan moratorium due to COVID crisis losses

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New Delhi | Jagran Business Office: The Federation of Hotel and Restaurant Associations of India (FHRAI) has asked Union Finance Minister Nirmala Sitharaman to consider a moratorium on loans taken by industry players and a special resolution framework for the loan restructuring as part of immediate pandemic support measures. battered industry. The sector’s demands precede the 2022-23 Union budget, which will be presented to Parliament on February 1.

Earlier in December 2021, the FHRAI sent its pre-budget recommendations to FM Sitharaman and suggested the inclusion of hotels and tourism-related sectors in the national infrastructure pipeline.

Now, in the representation submitted to FM, FHRAI is asking for a moratorium extension of at least one year for loans made under the Emergency Line of Credit Guarantee (ECLGS) program. Further, he also demanded that the Rs 60,000 crore loan guarantee scheme for the COVID-affected sector be notified with immediate effect.

“We are currently in the midst of the third wave of coronavirus and the hospitality industry will not be able to bear the brunt of another wave,” said Gurbaksh Singh Kohli, FHRAI Vice President, while commenting on the demands of the federation.

“Given the potential for damage and in order to be able to avoid the impact of the third wave, we are asking the Minister of Finance to immediately announce special measures for our sector,” he added.

Kohli also mentioned that with the sector inoperative due to restrictions, he is unable to repay loans already taken.

“Our main demand is a moratorium of at least one year for the repayment of loans with interest for the hotel industry. In addition to this, we ask that in view of the unprecedented situation in the tourism sector and the hotel industry, another round of framework resolution will be announced for the sector for the restructuring of its loans,” he said.

(With PTI entries)

Posted by:
Sugandha Jha

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