CORPORATE DEBT RESTRUCTURING TO HAVE MANDATORY RECOMPENSATION

Corporates, which have restructured their loans through the CDR route, have to pay re compensation to bankers if they want early exit from CDR. As per the current formula, companies have to pay a steep price to exit CDR. Now the company has to repay the principal that lenders had sacrificed while restructuring the loan. Also, they have to pay interest rate which is calculated as BPLR plus term premium and credit risk premium. The interest rate is calculated on the compound basis which is pinching the borrowers.