In that the government’s move to extend its Emergency Credit Line Guarantee scheme (ECLG) both in time and scope is no surprise, in fact it was necessary. On Sunday, the government said ECLG scheme would now cover the civil aviation and healthcare sector, and will be available until September end. The government standing guarantee for the credit risk has enthused lenders to extend credit without the usual reservations. Given the need of beefing up healthcare speedily amid a pandemic, the loans to this sector will provide enough support. While the pile of loans given under the scheme has a government guarantee, loans outside it will need restructuring or recovery efforts if stress increases.

Source: Mint June 01, 2021 03:56 UTC