Business Wire India
The liquidity crisis which impacted the economy in general and real estate in particular, might get slightly mitigated as a result of the Union Cabinet approving the ‘Partial Credit Guarantee Scheme’ for purchase of high-rated pooled assets from financially sound NBFCs/HFCs by PSBs.
Subject to the norms prescribed, as also the quantum allocated, the proposed Government Guarantee support and resultant pool buyouts should positively impact the economy as also real estate in the sense that it will help NBFCs/HFCs resolve their temporary liquidity and/or cash flow mismatch issues, and enable them to continue contributing to credit creation and providing lending to borrowers. This should provide some respite for the economy in general, and real estate in particular.
Dr. Niranjan Hiranandani is Co-founder and MD, Hiranandani Group. He is President (National), NAREDCO and President-Designate, ASSOCHAM.