Mumbai: Almost two-third of Crisil -rated mid-sized companies will be eligible for the restructuring window offered under the resolution framework 2.0 announced by the Reserve Bank of India (RBI) for contact-intensive sectors to alleviate liquidity challenges faced by companies in these sectors. 25 crore, only half of the crisil-rated mid-sized companies were eligible. Three out of four companies eligible for restructuring have sub-investment category ratings, indicating their relatively weak ability to manage liquidity shocks. Rescheduling of loan repayments under the restructuring 2.0 window will provide interim relief to these companies against such liquidity shocks." "However, there is a possibility that only large existing borrowers in contact-intensive sectors actually benefit from this on-tap liquidity window as banks may have greater comfort with them.

Source: Mint June 05, 2021 14:37 UTC