The World Bank’s Board of Executive Directors has approved a $750 million MSME Emergency Response program to support funding to micro, small, and medium enterprises (MSMEs), severely impacted by the COVID-19 pandemic.
The programme will help in improving funding capacity of small finance banks (SFBs) and non-banking financial companies (NBFCs) for the MSME sector.
The World Bank said this 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 loan has a maturity of 19 years including a five-year grace period.
‘Manufacturing index still in contraction mode in June’
Mumbai: India’s manufacturing activity surged sharply in June but continued in the contraction mode for a third straight month as demand and output suffered from three months of lockdowns to quell the spread of the coronavirus.
At 47.2 in June, the seasonally adjusted IHS Markit India Manufacturing PMI Index surged from 30.8 in May. A reading below 50 indicates contraction. Despite the rise, the latest reading pointed to a third successive monthly decline in the health of the manufacturing sector, albeit one that was far softer than registered in April and May, it said. PMI fell to 27.4 in April from 51.8 in March, its lowest reading since data collection began over 15 years ago. —ENS