The Prime Minister’s Office has flagged an important issue — of banks using the Insolvency and Bankruptcy Code as an easy way to recover their dues in the case of loans of ₹200 crore or less (BusinessLine, February 14), when they should be working out a restructuring package to bring these units (possibly, many of them MSMEs) back on track. With the economy barely growing at 5 per cent and industry showing signs of contraction, the PMO’s anxieties are understandable. Both fiscal and monetary policies are trying to spur credit growth to MSMEs and specific sectors hit by the downturn; however, bankers remain wary as ever of restructuring loans, fearing that their activities will be investigated.
via Tweak IBC process to focus on revival – The Hindu BusinessLine
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