Source: The Hitavada      Date: 03 Jan 2019 12:39:23










THE Reserve Bank of India (RBI) appears to have addressed one of the points of tussle with the Government by agreeing to restructure loans to the MSME sector. The other point of dispute was the level of reserves the RBI should maintain with itself and how much it should share with the Government. But restructuring of stressed standard assets was assuming urgency in the light of slowdown in the MSME (Micro, small and medium enterprises) sector and the cash crunch it was facing in the wake of demonetisation of high value currency. The Government recognised that the MSME sector is one of the major growth engines which contributes to employment generation to a large extent and also plays a significant role in GDP growth of the country. But there was reluctance on the part of the RBI to offer any relief from the accumulating loans of the MSME sector. But it was the RBI Board which had advised the apex bank to devise some form of restructuring package for this critical sector so that it could be helped in its revival process as early as possible.



THOUGH the President of America Mr. Donald Trump says that his country cannot be a policeman of the world, his utterances and actions betray unmitigated dichotomy. A leader who remained a recluse during much of his rule and defied the world in building nuclear arsenal, should show willingness to denuclearise his country’s defence programme was something unthinkable. That North Korean dictator Kim Jong Un has agreed to such a possibility was a great achievement for global peace and a victory for diplomacy. Mr. Kim had accordingly undertaken to dismantle some of his country’s nuclear facilities. However, Mr. Donald Trump seems to have put a stumbling block in this entire exercise by imposing sanctions on North Korea. In this situation if Mr. Kim, like Iran earlier, withdraws from the peace initiative and stops the denuclearisation programme the blame would be entirely on the bullying tactics of Mr. Trump. Iran has similarly threatened to resume its nuclear programme. Thanks to Mr. Trump.