Secy panel to look into dlr credit shortage: Sharma

Commerce and industry minister Anand Sharma today said a panel of secretaries will soon look into the complaints of non-availability of credit in foreign currencies to exporters.

Last Updated: Jun 03, 2010, 21:57 PM IST

Mumbai: Commerce and industry minister
Anand Sharma today said a panel of secretaries will soon look
into the complaints of non-availability of credit in foreign
currencies to exporters.

"There is going to be a meeting of group of secretaries
which will addresses the issue, so that banks can accordingly
be advised to ensure availability of dollar credit,
particularly at the time of need," Sharma told reporters here.

Exporters met Sharma to apprise him about the problems
they are facing in getting loans in dollars.

"I would ask the Cabinet Secretary, finance secretary,
and commerce secretary to sit together and take a view on it,"
the minister said.

Federation of Indian Export Organisations president A
Sakthivel said exporters are facing such problems because
banks prefer corporates for such credits to get better
returns. Exporters get dollar credit at Libor plus 225 basis
points. The Libor (London interbank offered rate) is an
international benchmark for lending rates and is always
changing as it is a floating rate.

While unveiling the foreign trade policy last August,
Sharma had said the government would ensure that the dollar
credit needs of exporters were met in a timely manner. To
ensure loan to exporters, the government set up a committee
comprising finance secretary Ashok Chwala, commerce secretary
Rahul Khullar and Indian Banks Association chairman MV Nair.

After contracting for 13 months in a row in wake of the
global demand slowdown, exports are showing growth since
last November.

PTI