New Delhi, Oct 3 (KNN) Federation of Indian Export Organisations (FIEO) has reached out to the central government to provide affordable and easy availability of credit to MSMEs amid global headwinds due to lack of liquidity, reported FE.

The exporters’ body has submitted a request to the Union Finance Minister Nirmala Sitharaman highlighting the issue. 

It has sought for the extension of Emergency Credit Linked Guarantee Scheme (ECLGS) till March 31, 2024 and restoration of interest subsidy benefit of 5 per cent to manufacturer MSMEs. 

It said some of the MSME sectors are affected due to a dip in exports on account of a global demand slowdown.

FIEO has urged extending the ECLGS “till March 31, 2024” as it will help micro, small and medium enterprises sail through this difficult time and bounce back when the situation improves.

“With interest rates firming up, MSMEs are getting credit at not less than 8-11 per cent. The subvention for the interest equalisation scheme was reduced as interest rates were coming down. However with complete change in situation, there is an urgent need to restore interest equalisation benefit of 5 per cent,” it added.  (KNN Bureau)