The Government of India and the World Bank have signed a 750 million US dollar agreement for the MSME Emergency Response Programme.
Aims: The programme aims at supporting increased flow of finance to micro, small, and medium enterprises (MSMEs) which are severely impacted by the COVID-19 crisis.
The World Bank’s MSME Emergency Response Programme 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.
The Ministry of Finance in a statement said, this is the first step among a broader set of reforms that are needed to propel the MSME sector over time.
World Bank Covid-19 Support: The World Bank has to date committed $2.75 billion to support India’s emergency COVID-19 response, including the new MSME project.The first $1 billion emergency support was announced in April this year for immediate support to India’s health sector. Another $1billion project was approved in May to increase cash transfers and food benefits to the poor and vulnerable, including a more consolidated delivery platform – accessible to both rural and urban populations across state boundaries.
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.
