In a recent turn of events, The President of Confederation of Real Estate Developers’ Associations of India (CREDAI) (National), Satish Magar has said that more strict measures are being expected by the real estate sector from the RBI in its bid to revive the economy.
Talking about the development, Satish Magar said “The real estate sector can act as a catalyst in resurrecting the economy, backed by stringent fiscal and non-fiscal measures. The move of moratorium extension is a short-term piecemeal solution to a long-term problem.”
“Interest rate should be reduced with firm liquidity measures, as this is the need of the hour, backed by one-time restructuring of loans to help the real estate sector from crumpling,” he added.
In a press statement, Magar further went on to say that the RBI has tried to ease the pressure on borrowers and has extended the group exposure limit for lenders to corporates from 25 per cent to 30 per cent.
However, he reiterated that this won’t be enough to solve the ongoing liquidity crisis.
“Currently, there is a dearth of income in the sector owing to the Covid-19 crisis. The government needs to ensure that banks are forthcoming and are passing on the benefits to us,” said Magar.
Furthermore, he said that after agriculture, the real estate industry remains the second-largest employer. He also said that the prolonged slowdown in the sector will have a direct impact on the survival of 269 allied industries.
Thus, it is important for the government and RBI to take immediate measures to provide economic relief in the longer run.