The Finance Ministry stated that the central government and World bank has signed an agreement worth $750million to boost MSME(Micro, Small and medium enterprises) which have been severly hit due to Covid 19 Pandemic.
The agreement is for the MSME Emergency Response Program which will provide increased financial support to the MSMEs who in recent months have borne the impact of the coronavirus crisis.
— World Bank India (@WorldBankIndia) July 6, 2020
An statement released by the World Bank says, “The World Bank’s MSME Emergency Response program will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time,”
The agreement was signed on behalf of the Government of India, on behalf of the World Bank, by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Junaid Ahmad, Country Director, India.
“This project will support the Government in providing targeted guarantees to incentivize NBFCs and banks to continue lending to viable MSMEs to help sustain them through the crisis,” Khare said.
The international baning body, including its private sector arm – the International Finance Corporation (IFC), will support the government’s initiatives to protect the MSME sector by “unlocking liquidity, enabling financial innovations” and supporting “key market-oriented channels of credit such as the NBFCs and Small Finance Bank (SFBs),” the official press release stated.