SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 25 Mar, 2020  

Rupee.9.Thmb.jpg 'Soft loan for MSMEs, cash transfers expected'

Rupee.9.jpg
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
SME Times News Bureau | 25 Mar, 2020
As the country goes into a 21-day lockdown starting Wednesday in view of the coronavirus crisis, Emkay Global Financial Services expects that the government would offer soft loans for Micro, Small and Medium Entreprises (MSMEs), cash transfers and restructuring of loans to provide to the sector which would be severely hit due to the lockdown.

In a report on Wednesday, Emkay said that for the "first time in living memory", many industries or SMEs (small and medium enterprises) will be running on zero revenue for close to a month.

"Even the 'opening up' after the lockdown is likely to be measured (lest a asecond wave' hits back). This means that there will be a permanent impact of this 21-day shutdown even into the longer-term numbers (that of funding the fixed costs when revenues are nil)," it said.

Daily wage earners in cities could be badly hit as they cannot go back to their hometowns either, with all public transport being grounded. The share of unorganised sector is high, and this segment was still emerging from the back-to-back shocks of demonetization and GST, it noted

"The shutdown could push them to the brink," said the report.

"We would expect measures like MSME soft loans, loan restructuring, cash transfers, etc. In addition, at the moment - given the quick decisions on shutting down public transport - it is unclear if we should be worried about the disease spreading from urban areas to the rural areas too," Emkay said.

It said that although some state governments have offered free food supplies and cash transfers, there is no nationwide effort announced yet.

On the stock markets, Emkay Global said that sentiments in the global markets would depend on the drop of positive coronavirus cases in the US and Europe.

"For sure, many Indian stocks have fallen to attractive levels. However, we retain the view that the global capital market sentiment would hinge on sustained drop in new daily case counts in the US and Europe," it said.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter