The tourism industry has welcomed the recommendations of the Kamath Committee, however industry players think it may be difficult for some to meet the parameters. The KV Kamath Committee has listed tourism among the 26 sectors that require financial restructuring in the aftermath of the COVID-19 crisis. The five-member committee appointed by the Reserve Bank of India (RBI) has recommended five financial parameters or ratios with sector-specific thresholds that lending institutions can factor in as part of a graded approach to restructuring or finalising a resolution plan for a borrower. The five parameters for each sector are the total outstanding liability to adjusted net worth, total debt to EBITDA, debt service coverage ratio (DSCR), average DSCR, and current ratio. Debt/E...
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