Question:The Government of India signed the $750 million agreement for the MSME Emergency Response Programme with which organization?
(a) Asian Development Bank
(b) World Bank
(c ) International Monetary Fund
(d ) None of these
Answer:(b)
- Context:
- The World Bank and the Government of India signed the $750 million agreement for the MSME Emergency Response Programme.
- About:
- The World Bank’s MSME Emergency Response Programme will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs.
- The $750 million loan from the International Bank for Reconstruction and Development (IBRD), has a maturity of 19 years including a 5-year grace period.
Facts:
- It will infuse liquidity to the MSME sector by de-risking lending from banks and Non-Banking Financial Companies (NBFCs) to MSMEs through a range of instruments, including credit guarantees.
- Improving the funding capacity of key market-oriented channels of credit, such as the NBFCs and Small Finance Bank (SFBs), will help them respond to the urgent and varied needs of the MSMEs.
- The program will incentivize and mainstream the use of fintech and digital financial services in MSME lending and payments.
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