West Asia Crisis Hits Exporters: Banking Issues Flagged, Govt Assures Help

• Exporters flag payment delays, working capital crunch, and penal interest risks due to West Asia crisis and Red Sea disruptions.
• FIEO DG Ajay Sahai highlights extended voyage durations impacting liquidity, compliance, and financing costs.
• Issues include Letter of Credit expiry risks, need for financial cycle extension, and waiver of penalties.
• Combined impact of penal interest and lost interest subvention could raise credit cost by 5.75-6.75%.
• Department of Financial Services and IBA assure exporters of support and resolution for the flagged banking and finance challenges.