The World bank said in a statement that the “World Bank’s board of executive directors has approved a $750 million MSME Emergency Response program to support increased flow of finance into the hands of MSMEs, severely impacted by the Covid-19 crisis.
The World Bank funding would support the government’s initiative to protect the micro, small and medium enterprises (MSME) sector. Approximately 15 crore MSMEs will receive this support to increase liquidity access for viable small businesses impacted by Covid-19.
The World Bank has extended $5.13 billion loans to India in the 2020 fiscal which is the highest in the decade. The 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 micro, small and medium enterprises (MSME) sector by unlocking liquidity, strengthening non-banking financial companies and small finance banks and enable inclusive access to financing.
