NEw Delhi/Mumbai: Inadequate collateral and weak cash flows are likely to be key challenges for airlines seeking one-time loan restructuring after the loan moratorium ends on 31 August, bankers and airline executives said.
The Reserve Bank of India (RBI) has appointed a five-member panel led by former ICICI Bank chief executive K.V. Kamath to prepare a report by 6 September on the criteria to recast covid-19 related stressed accounts. Airlines remain engaged with lenders, but a final decision can be taken only after the committee’s recommendations.
Airlines are in desperate need for working capital, but bankers are not very keen to fund the recovery of the sector.
