Russia's invasion of Ukraine and subsequent sanctions from the US, UK, among other countries has not only affected Moscow as even the Indian exporters are also worried about stalled payments.
The government is considering guarantees of lenders' letters of credit and soft loans for exporters hit by a cash squeeze
Russia's invasion of Ukraine and subsequent sanctions from the US, UK, among other countries has not only affected Moscow as even the Indian exporters are also worried about stalled payments.
For their relief, the central government is considering guarantees of lenders' letters of credit and soft loans for exporters hit by a cash squeeze, Reuters had reported.
Indian banks are scrambling after bills for imports from Russia have started bouncing and payments for exports have been stuck.
Indian exporters are owed about $500 million from Russia and the government may guarantee banks' letters of credit or loans to help ease the crunch, it quoted a senior official.
"Letters of credit is the most likely option," the official said.
The government is also looking at having state-owned banks lend to exporters at reduced rates or provide funds to them directly up to the number of pending payments from Russia and Ukraine, the report said.
India exported $3.33 billion worth of goods to Russia in 2021, mainly pharmaceutical products, tea, and coffee, while imports totalled $6.9 billion, including defence goods, mineral resources, fertilizers, metals, and precious stones.