New Delhi, Mar 15 (KNN) MSME Ministry has extended the credit guarantee scheme for subordinate debt (CGSSD) by one more year till March 31, 2023.

The decision of extension was made on the basis of the requests received from the stakeholders of the scheme, said the official press release. 

The government announced creation of ‘Distressed Assets Fund- - Subordinate Debt for Stressed MSMEs’ on May 13, 2020, under the Aatma Nirbhar Bharat Package.

Accordingly, CGSSD was approved by the Government on June 1, 2020 and the scheme was launched on 24th June, 2020 to provide credit facility through lending institutions to the promoters of stressed MSMEs.

The scheme is for SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions. 

Initially, the scheme was upto March 31, 2021 and to keep the assistance available for stressed MSME units, the government had earlier extended this scheme upto March 31, 2022. (KNN Bureau)