World Bank announces to give USD 750 million fund to support Covid-hit MSMEs
New Delhi, Jul 1 (KNN) The World Bank on Wednesday announced to give USD 750 million-budget support to 15 crore Micro, Small and Medium Enterprises (MSMEs) to increase liquidity access for viable small businesses impacted by Covid-19.
''The World Bank’s board of executive directors has approved a USD 750 million MSME Emergency Response program to support increased flow of finance into the hands of MSMEs, severely impacted by the Covid-19 crisis,” World Bank said in a statement.
World Bank Country Director in India Junaid Ahmad said this funding is under the multilateral lender’s Development Policy Law, which is a direct budget support.
''The funding would support the government’s initiative to protect the MSME sector by unlocking liquidity, strengthening non-banking financial companies and small finance banks and enable inclusive access to financing,'' he added.
Ahmad further said that in the next stage of the World Bank’s assistance programme for MSMEs, the multilateral lender would engage with the MSME Ministry and the states to ensure capacity development at cluster level.
During the 2020 fiscal (July 2019-June 2020), the World Bank has extended USD 5.13 billion loans to India-- which is the highest in a decade. This includes USD 2.75 billion given in three months in response to the Covid-19 pandemic.