Cos Liquidate Stock to Repay Loans, Diamond Prices May Fall

Surat: Diamond connoisseurs can expect further fall in the prices of polished gems in the next three to four months. Companies making polished diamonds in Surat and Mumbai have started liquidating their inventories by offering discounts ranging from 30-40% for settling the loan accounts with the banks.

Diamond companies have been given the ultimatum to settle their outstanding loan accounts before March 31. Following the bank frauds reported in the last two years involving leading diamond company owners, the banks have reduced their credit exposure to their existing customers in the industry by almost 50%. The collateral has been also increased up to 100% to avoid defaults.

Courtesy: Times of India