5 months ago
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Chief Minister M.K. Stalin on Thursday wrote a letter to Union Finance Minister Nirmala Sitharaman, urging her to direct all financial institutions to provide a three-month moratorium on repayment of monthly instalments of all term loans availed of by families and business units in the Cyclone Michaung-affected districts of Chennai, Tiruvallur, Kancheepuram and Chengalpattu.
In the letter, Mr. Stalin appealed to her to facilitate a deferment of three months on the repayment of interest on working capital facilities sanctioned in the form of cash credit or overdraft.
He said 37 lakh families in the four districts bore the brunt of relentless rain, which caused significant disruption in their livelihoods and damage to their properties. While the State government was able to restore normalcy in their daily lives, the impact on their livelihood lingered, the Chief Minister said.
“Small businessmen, traders and MSMEs impacted by the floods are yet to return to their regular economic activities,” he said, stressing the urgent need to mitigate the burden of immediate debt servicing by relaxing repayment schedules.
The Chief Minister urged the Union Minister to direct all commercial banks, cooperative banks, all-India financial institutions and non-banking financial companies to issue a moratorium for three months from December 1, 2023 to February 29, 2024 in respect of all term loans, including agricultural term, retail and crop loans.
