World Bank offers $ 750 mn loan for India's covid-hit MSMEs
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.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User 

    COMMENTS

    tillan2k

    4 days ago

    It appears world bank Like W H O has also become Chinese Bank Loans may have been offered to facilitate MSME to import Chinese goods

    Traders body CAIT seeks 'country of origin' for all goods sold in India
    Carrying forward its campaign for boycott of Chinese products and purchase of Indian goods, the Confederation of All India Traders urged the Union Commerce Minister Piyush Goyal to make the mention of 'country of origin' mandatory for all products sold in the country, both online and offline.
     
    The traders' body has also sought the mention of value addition in the products.
     
    "Products not carrying the above description should not be sold in the country and in the event of violation of this provision, the manufacturer, producer, importer or marketer as declared in the packaging should be held responsible and action must be taken against them," said the letter by Praveen Khandelwal, Secretary General of CAIT.
     
    According to Khandelwal the concept of value addition will contain the details about the composition of the products whether the product is "100% Made in India" or imported or assembled in India.
     
    The demand comes after the government has made it mandatory for sellers to mention the 'Country of Origin' while registering all new products on government e-marketplace (GeM).
     
    Further, the Department for Promotion of Industry and Internal Trade (DPIIT) is also considering making the mention of 'country of origin' mandatory for products sold on e-commerce platforms and has talked to the e-commerce players on the issue.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User 

    COMMENTS

    rs235m

    7 days ago

    Some crooked businessmen import from China and stick "made in India" label over made in China writing.

    COVID Halt: FY20-21 Auto Retail Sales Feared To Crash by 25% to 45%
    India's auto sector retail off-take might just come to a screeching halt as COVID-induced economic contraction hits the brake on showroom sales.
     
    Accordingly, the auto sector is bracing for the mega impact with estimates ranging from 25%-45% deceleration in retail sales in a few segments on a year-on-year (y-o-y) basis for FY20-21.
     
    In fact, the same contraction rate can be expected in wholesales as "stocking activity is currently taking place at dealership level in tune with retail numbers" said Federation of Automobile Dealers Associations' president Ashish Harsharaj Kale.
     
    Even though just an estimate, the forecast is in part co-related to the prediction of an overall dip in India's GDP growth rate.
     
    National and international monetary agencies have cited a range of negative 4.5% to 5% contraction in India's GDP growth rate.
     
    "If the projected economic contraction holds true, it would surely hit the sectors that depend on discretionary spending," Mr Kale said.
     
    "The retail sales will vary from segment to segment but at an overall aggregate level it is expected to fall by 25%-45% across various segments with CV being the worst hit. This fall might also be mitigated by factors such as healthy pick up in rural demand and complete restart of the OEM operations soon."
     
    According to Kale, there has been a slow pickup in sales during June and even supply side is not fully restored. However, he is hopeful of further government support to prop-up the economy and the sector.
     
    "We expect a good pick up by September onwards during the festive season. By that time, hopefully, the complete supply chain will also be restored," Kale said.
     
    "We will also be able to see the positive impact of various schemes under government's stimulus programme, especially in the rural areas."
     
    Besides, Kale pointed out that off-take in rural areas has shown rapid improvement and demand there should bounce back sooner than expected.
     
    "Motorcycle, tractor and small commercial vehicle segment have shown positive movement," he said.
     
    "The bounce back in sales is first expected to take place in rural areas. A good crop last season and expectations of a healthy monsoon and other factors support this prediction."
     
    As per FADA, nearly 85% of all dealerships are operational across the country now.
     
    The Association represents over 15,000 automobile dealers having 25,000 dealerships, accounting for 90% of automobile sales and service in India.
     
    Its members employ over 40 lakh employees in the country at dealerships and service centres with 25 lakh direct employees and another 15 lakh indirect depends.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User 

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone