RBI 3-month EMI moratorium could provide Rs 2.1 lakh crore liquidity to companies

Mumbai: The Reserve Bank of India’s three-month suspension of EMIs could provide a liquidity breather of Rs 2.10 lakh crore if all corporates avail it, says a report. The findings by Crisil Ratings are based on assessment of 9,300 of its rated non-financial sector companies across 100 sectors.

It said sectors with higher leverage, such as power, telecom, roads, textiles and fertilisers, will be the major beneficiaries and account for nearly 47 per cent of the total breather available.

“The moratorium announced by RBI on interest and principal obligations due between March 1 and May 31, 2020, would tantamount to a liquidity breather of Rs 2.10 lakh crore if all companies opt for it,” the rating agency said in a report.

The amount is arrived at by considering total principal and interest falling due in the three-month period, it said.