Financial creditors’ claims over the bankrupt firms should have the primacy relative to other forms of creditors as they take more risks, central bank governor Shaktikanta Das said Thursday, adding that any amendments to the Insolvency and Bankruptcy Code (IBC) should continue to recognise the interests of financial creditors as paramount.
MUMBAI: Financial creditors’ claims over the bankrupt firms should have the primacy relative to other forms of creditors as they take more risks, central bank governor Shaktikanta Das said Thursday, adding that any amendments to the Insolvency and Bankruptcy Code (IBC) should continue to recognise the interests of financial creditors as paramount.
“It has to be recognised that the financial creditors take the maximum risk and hence their risk needs to be commensurately compensated and with priority,” Governor Das said at a conference in Mumbai.
