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Tag: moratorium

Companies back moratorium on deep sea mining

Companies back moratorium on deep sea mining

Science
A long-running dispute over plans to start mining the ocean floor has suddenly flared up.For years it was only environmental groups that objected to the idea of digging up metals from the deep sea.But now BMW, Volvo, Google and Samsung are lending their weight to calls for a moratorium on the proposals. The move has been criticised by companies behind the deep sea mining plans, who say the practice is more sustainable in the ocean than on land.The concept, first envisaged in the 1960s, is to extract billions of potato-sized rocks called nodules from the abyssal plains of the oceans several miles deep.Rich in valuable minerals, these nodules have long been prized as the source of a new kind of gold rush that could supply the global economy for centuries.Interest in them has intensified beca...
Government not inclined to bear loan moratorium costs

Government not inclined to bear loan moratorium costs

Finance
The government is not inclined to bear the burden arising of the recent Supreme Court judgement on a blanket waiver of compound interest or interest on interest on all loan accounts which opted for moratorium during March-August 2020. "They (banks) are well-poised to handle this and we don't see any space for government relief," said a senior government official. The government has already compensated banks for the interest on interest they had lost on loans outstanding below Rs 2 crore. Analysts estimate the additional cost to reimburse banks for all loans at Rs 7,000-10,000 crore. "There is no directive from the court ordering the government to bear this cost," the government official said on the condition of anonymity. Since there is no deadline to refund the compound interest they hav...
Government opposes further loan moratorium

Government opposes further loan moratorium

Finance
NEW DELHI: The government on Friday cited constraints imposed by the country’s economic situation and the uncertainty over the Covid-19 pandemic to oppose any further Supreme Court relief by way of extending the loan moratorium scheme to other affected sectors. The government, through Solicitor General Tushar Mehta, told a bench led by Justice Ashok Bhushan that it had already extended the loan moratorium scheme for small borrowers and waived interest on interest. “Any such relief sector-wise would be a problem under Article 32,” he said. “There is already a mechanism (restructuring). Let them work out things under the mechanism,” the SG said. “Given the economic position of the country and the pandemic… no one knows when this situation will end,” he said. Further relief would be difficult...
Moratorium period exceeding six months may result in vitiating overall credit discipline: RBI to SC

Moratorium period exceeding six months may result in vitiating overall credit discipline: RBI to SC

Finance
NEW DELHI: A loan moratorium exceeding six months might result in “vitiating the overall credit discipline”, which will have a “debilitating impact” on the process of credit creation in the economy, the Reserve Bank of India has told the Supreme Court. In an affidavit filed in the apex court in the loan moratorium case, the RBI has said that a long moratorium period could impact credit behaviour of borrowers and increase the risks of delinquencies post resumption of scheduled payments. The banking regulator fled the affidavit in pursuance to the apex court's October 5 order asking the Centre and the RBI to place on record the K V Kamath committee recommendations on debt restructuring because of COVID-19 related stress on various sectors as well as the notifications and circulars issued ...
SC asks Centre, RBI to file Kamath panel suggestions, their decisions on loan moratorium

SC asks Centre, RBI to file Kamath panel suggestions, their decisions on loan moratorium

Finance
The Supreme Court Monday asked the Centre and the RBI to place on record the K V Kamath committee recommendation on debt restructuring due to COVID-19 related stress on various sectors as also the notifications and circulars issued by them so far on the issue of loan moratorium. The apex court's direction came after the Finance Ministry decided to grant relief to individual borrowers as well as medium and small industries by agreeing to waive compound interest (interest on interest) charged on loans of up to Rs 2 crores for a six-month moratorium period announced due to the pandemic. A bench comprising Justices Ashok Bhushan, R Subhash Reddy and M R Shah took up the pleas alleging that banks have decided to charge interest on the EMIs which have not been paid by the borrowers from March on...