Coimbatore : The local chapter of Indian Chamber of Commerce and Industry today thanked RBI for releasing guidelines on restructuring of advances to MSMEs, which contribute 50 percent to the manufacturing sector.

RBI has decided to permit a one-time restructuring of existing loans not exceeding Rs.25 crores to MSMEs which are in default but ‘standard’ as on January one without an asset classification downgrade, which will be a big relief to financially stressed MSMEs, Chamber President, V Lakshminarayanasamy said in a release here.

Stating that the RBI has taken this decision by understanding the structural bottlenecks and factors’ affecting the performance of the MSMEs, he expressed happiness that the Governmenta and RBI have considered the importance of the MSMEs in the Indian Economy.

The MSMEs exporting sectors which were affected due to demonetization and implementation of GST would be benefitted by the move, he said.

A provision of 5 per cent in addition to the provisions already held, shall be made in respect of accounts restructured under this scheme is also a welcome move. he said.