|
|
|
$750 mn World Bank loan for covid-hit MSMEs
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 01 Jul, 2020
The World Bank's Board of Executive Directors has approved a $750
million MSME Emergency Response program to support increased flow of
finance into the hands of India's micro, small, and medium enterprises
(MSMEs), severely impacted by the COVID-19 crisis.
The MSME
Emergency Response program will address the immediate liquidity and
credit needs of some 15 lakh viable MSMEs to help them withstand the
impact of the current shock and protect millions of jobs, a World Bank
statement said.
"This is the first step among a broader set of reforms that are needed to propel the MSME sector over time," it said.
The
$750 million loan from the International Bank for Reconstruction and
Development (IBRD), has a maturity of 19 years including a 5-year grace
period.
The statement said that the World Bank Group, including
its private sector arm - the International Finance Corporation (IFC),
will support the government's initiatives to protect the MSME sector by
unlocking liquidity and strengthening NBFCs and small finance banks and
enabling financial innovations.
This program will support the
government's efforts to channel liquidity to the MSME sector by
de-risking lending from banks and Non-Banking Financial Companies
(NBFCs) to MSMEs through a range of instruments, including credit
guarantees.
The initiative will also support the government's
refinance facility for NBFCs. In parallel, the IFC is also providing
direct support to SFBs through loans and equity, it added.
"The
MSME sector is central to India's growth and job creation and will be
key to the pace of India's economic recovery, post COVID-19. The
immediate need is to ensure that the liquidity infused into the system
by the government is accessed by MSMEs," said Junaid Ahmad, World Bank
Country Director in India.
He added that the overall financing ecosystem for MSMEs also needs to be strengthened.
"This
operation seeks to achieve both these objectives by furthering the role
of NBFCs and SCBs as effective financial intermediaries and leveraging
fintech to broaden the reach of finance into the MSME sector," Ahmad
said.
The World Bank has so far committed $2.75 billion to
support India's emergency COVID-19 response, including the new MSME
project.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|