The World Bank has approved a $750 million MSME Emergency Response program for MSMEs in India. The MSME Emergency Response program aims to support increased flow of finance in Micro, Small, and Medium Enterprises (MSMEs) which have been severely impacted by the COVID-19 crisis. MSMEs are presently burdened with cancelled orders, loss of customers including the supply chain disruptions, resulting in a sharp fall in revenues. This has led to cash flow shortage and potentially leading to solvency problems.
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Through its MSME Emergency Response program, World Bank will address the present liquidity and credit needs of about 1.5 million viable MSMEs. The program is expected to help these MSMEs withstand the impact of the sudden shock. The World Bank Group will address the above issues along with its private sector arm, the International Finance Corporation (IFC) by supporting the government’s initiatives in order to protect the MSME sector by unlocking liquidity, strengthening Non-Banking Financial Company (NBFCs) and Small Finance Bank (SFBs), and Enabling financial innovations.
Important takeaways for all competitive exams:
- President of World Bank: David Malpass.