Banks to submit proposal to RBI for recast of airline loans: Sources

New Delhi: The Indian aviation sector has had it tough over the past few months but now there may be some hope for its growth plans. Sources tell NDTV the banking industry has started a lobbying process with the Reserve Bank of India for a special aviation debt restructuring exercise.
On its part the RBI has indicated that if banks come up with a strong case for a consolidated proposal, it will consider it.
The central bank however is reluctant to allow a special recast for aviation loans as it believes that individual stressed cases can be tackled under the Corporate Debt Restructuring process. Besides the RBI also says that exemption for one industry can be seen as unfair against others like textile that too have seen pain.
Meanwhile bankers and airline companies are working together to put a proposal in place.
13/07/10 NDTV.com

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Categories: Indian Aviation- In General Jul 2010