Indian banks begin cutting credit over default fears

ABN Amro, Standard Chartered, State Bank of India and IDBI Bank continue to reduce credit levels to jewellery companies.

Winsome Diamonds and Forever Precious Diamond had defaulted on a $970 million debt owed to creditors prompting banks to act. The Banks have classified gems and jewellery into the high risk category.

Jewellery industry representatives will meet with Finance Ministry officials on Tuesday In a bid to bring much needed liquidity into the industry.

 

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