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Opinion | Debtors need waivers that banks can’t afford

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Borrowers are asking for actual debt relief, but banks need to stay afloat. The burden of covid relief can’t be thrust upon lenders beyond a point.

The Centre must pick up the tab India’s Supreme Court has sought the response of the finance ministry on demands by debtors for an interest waiver during the moratorium until 31 August.

As covid relief, this is the date till when borrowers can defer paying back their loans without being called defaulters. As they see it, the relaxation offer lacks generosity, since credit charges are only to be held in abeyance, not pardoned, with the eventual burden piling up month after month, made heavier still by interest charged on unpaid repayments.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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