Banks go easy on loan repayments from diamond exporters

Companies will get more time to repay loans they take to fund overseas shipments, the Gem & Jewellery Export Promotion Council (GJEPC) said in a note to members. Owing to the coronavirus outbreak in most parts of the world, exporters’ ability to recover payments from customers has suffered in the past two months; as China and Hong Kong account for about a third of orders.

Polished-diamond shipments to all markets fell 41 per cent to $1.38 billion in February, according to data from the GJEPC. The organisation had asked the government and banks for leniency due to the slowdown and its impact on cash flow.

The pandemic has started to affect the domestic market, too, with the Bharat Diamond Bourse in Mumbai asking member companies to reduce their staff head count by 50 per cent. However, the Surat Diamond Association decided to keep the polishing industry open while implementing health precautions.