MSME Emergency Response Programme

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MSME Emergency Response Programme

  • World Bank and the Government of India signed an agreement for the MSME Emergency Response Programme.
  • It involves $750 million loan from the International Bank for Reconstruction and Development (IBRD).
  • The loan has a maturity of 19 years including a 5-year grace period.
  • The programme aims to support increased flow of finance into the hands of MSMEs severely impacted by the COVID-19 crisis.
  • It 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.
  • It will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact and protect millions of jobs.

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