RBI's one-time COVID debt recast sees few takers in corporate world

RBI's one-time COVID debt recast sees few takers in corporate world

Credit ratings agency CRISIL said that said that the number of companies seeking RBI's one-time-debt restructuring may increase if sentiment around recovery dampens or COVID-19 afflictions keep increasing, leading to fresh curbs on economic activity

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Only 1 per cent of companies may opt for RBI's one-time COVID deb recast, says CRISILOnly 1 per cent of companies may opt for RBI's one-time COVID deb recast, says CRISIL
BusinessToday.In
  • Nov 17, 2020,
  • Updated Nov 17, 2020 3:57 PM IST

As many as 99 per cent of companies, excluding MSMEs, rated by credit ratings agency CRISIL are unlikely to opt for the RBI's one-time-debt restructuring (OTDR), it said, citing a preliminary analysis of 3,523 such non-MSME firms.

The RBI had, on August 6, 2020, announced the scheme as a relief measure for non-MSME corporate borrowers having an aggregate exposure of greater than Rs 25 crore and were under stress due to the COVID-19 pandemic.

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But of the CRISIL sample, only around 1% indicated that they would apply for OTDR. This is despite two-thirds of the rated entities being eligible based on the parameters proposed by the K V Kamath Committee set up by the RBI.

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As many as 99 per cent of companies, excluding MSMEs, rated by credit ratings agency CRISIL are unlikely to opt for the RBI's one-time-debt restructuring (OTDR), it said, citing a preliminary analysis of 3,523 such non-MSME firms.

The RBI had, on August 6, 2020, announced the scheme as a relief measure for non-MSME corporate borrowers having an aggregate exposure of greater than Rs 25 crore and were under stress due to the COVID-19 pandemic.

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But of the CRISIL sample, only around 1% indicated that they would apply for OTDR. This is despite two-thirds of the rated entities being eligible based on the parameters proposed by the K V Kamath Committee set up by the RBI.

Also Read:

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