FIEO acknowledges midterms review of credit policy by RBI
28 Oct '05
1 min read
Mid-Term Review of the Credit policy by the Reserve Bank of India has been appreciated by the Federation of Indian Export Organisations (FIEO).
FIEO believed that the Review would give a push to export of textile goods since it aimed to authorize banks to issue guarantee or stand-by letter of credit regarding external commercial borrowings generated by textile companies for upgrading and development.
Lack of FDI has a detrimental effect on the textiles export but the RBI decision would help in bridging the gulf, said FIEO President, O.P. Garg.
The FIEO also pointed out that the exporters should be freed from ECGC (Export Credit Guarantee Corporation) cover of pre-shipment credit and notified banks should be allowed to cover the risks.
The RBI could have offered companies more facilitative benefits in their efforts of global expansion by liberalizing capital account convertibility, added FIEO.
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