World Bank and Indian Government Sign $ 750 Million Agreement to Support MSMEs Amid Covid-19 Crisis | Latest India News
The World Bank and the central government signed an agreement worth $ 750 million to boost financial flows to micro, small and medium enterprises (MSMEs) amid the Covid-19 crisis, the ministry said finances.
The agreement is for the MSME Emergency Response Program, which will provide increased financial support to MSMEs that have been impacted by the coronavirus crisis in recent months.
âThe 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 in a broader set of reforms that are needed to propel the MSME sector over time, âread a statement issued by the World Bank.
On behalf of the Government of India, the agreement was signed by Sameer Kumar Khare, Deputy Secretary, Department of Economic Affairs, Ministry of Finance and Junaid Ahmad, Country Director, India, on behalf of the World Bank.
âThis project will help the government provide targeted guarantees to incent NBFCs and banks to continue lending to viable MSMEs to help them get through the crisis,â Khare said.
The international ban body, including its private sector arm – the International Finance Corporation (IFC), will support government initiatives to protect the MSME sector by “freeing up cash, enabling financial innovations” and supporting “major market-oriented credit channels such as NBFC and Small Finance Bank (SFB),” the statement said.