Christ Yoder
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NEW DELHI: The world Bank on Monday signed a $ 750 million (roughly Rs.5,600 crore) deal with the government to Emergency response program for MSMEs support the increased flow of finance into the hands of micro, small and medium-sized enterprises (MSME) severely affected by Covid-19 crisis.
The program will meet the immediate liquidity and credit needs of nearly 15 lakh of viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step in a larger set of reforms that are needed to propel the MSME sector over time.
The agreement was signed by Sameer Kumar Khare, deputy secretary at the department of economic affairson behalf of the government and Junaid Ahmad, Country Director (India) on behalf of the World Bank.
Khare said the Covid-19 pandemic has severely affected the MSME sector, resulting in the loss of livelihoods and jobs. The government is working to ensure that the abundant financial sector liquidity available flows to non-bank financial corporations (NBFCs) and that banks that have become extremely risk-averse continue to take exposures in the economy.
“The project will help the government provide targeted guarantees to encourage NBFCs and banks to continue lending to viable MSMEs to help them weather the crisis,” he said in an official statement.
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The program will meet the immediate liquidity and credit needs of nearly 15 lakh of viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step in a larger set of reforms that are needed to propel the MSME sector over time.
The agreement was signed by Sameer Kumar Khare, deputy secretary at the department of economic affairson behalf of the government and Junaid Ahmad, Country Director (India) on behalf of the World Bank.
Khare said the Covid-19 pandemic has severely affected the MSME sector, resulting in the loss of livelihoods and jobs. The government is working to ensure that the abundant financial sector liquidity available flows to non-bank financial corporations (NBFCs) and that banks that have become extremely risk-averse continue to take exposures in the economy.
“The project will help the government provide targeted guarantees to encourage NBFCs and banks to continue lending to viable MSMEs to help them weather the crisis,” he said in an official statement.
