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World Bank, GoI sign $750 million agreement for MSME Emergency Response Programme
Jul-07-2020
With an aim to support increased flow of finance into the hands of micro, small, and medium enterprises (MSMEs), the World Bank and the Government of India (GoI) have signed the $750 million agreement for the MSME Emergency Response Programme.

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. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.

Meanwhile, the Government of India is focused on ensuring that the abundant financial sector liquidity available flow to NBFCs, and that banks which have turned extremely risk averse, continue taking exposures in the economy by lending to NBFCs. 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.
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