‘A big relief for real estate’

The steps taken by the RBI to protect the financial sector in the wake of the COVID-19 impact have been welcomed by financial experts and lenders.

Shishir Baijal, Chairman & Managing Director, Knight Frank India said: “We are delighted with the RBI announcements which have far exceeded industry expectations. The apex bank has checked all the required boxes of rate cut, liquidity infusion and moratorium. These steps will help the economy to stay stable despite the lockdown and economic disruption.

The moratorium of 3 months for all term loans and deferment of interest on working capital by 3 months will be very helpful at this point when most businesses are unable to have a steady cash flow.

We see this as a big relief for the real estate sector which would have been one of the worst effected owing to its linkages with the overall economy”.

Ramesh Nair, CEO & Country Head, JLL India: “ This is a very significant move with substantial monetary policy intervention at a time when COVID-19 has impacted the economy at large. This is in conjunction with the economic package announced by the Finance Minister for the poor. The package is expected to benefit 3.5 crore registered construction workers.”

Niranjan Hiranandani, President – ASSOCHAM:"For the unorganised sector including agrarian and construction labourers, these moves aim at resolving primary problems. For the organised sector, EPF contribution by the government for some segments will ensure that the bottom of the pyramid is able to handle the challenges of the lockdown.”

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