Distressed MSMEs to get Rs. 20,000 crore Guarantee cover:
India’s distressed MSMEs sector has got another push with the launch of Credit Guarantee Scheme. The schemes also cover to the promoters who can take debt from banks to further invest in stressed MSME’s.
Expectations are that these schemes will provide much-required support to MSME’s and will help in reviving the economic activity. It will also help to protect livelihoods and jobs of millions of people who depend on them.
FPIs infuse Rs 17,985 cr in June amid increasing liquidity, risk appetite:
FPIs remained net sellers for three preceding months.
This shows that the FPIs are quite supportive due to a gradual resumption in business activities. Economies all over the world are increasing liquidity, and risk appetite for high risk investment like equities is also increasing considerably which is again a sign that things will get back to normal soon.
India retains position of third largest economy in PPP, global actual individual consumption, capital formation:
The findings are a part of World Bank new PPPs for reference year 2017.
Purchasing Power Parity is an important measure of economic activities to be comparable across economies.
Government approves 2% interest subvention schemes for small MUDRA borrowers:
Benefit will be applicable for 2 months to all loan accounts under ‘Sishu’ category of Mudra scheme, provided they have not been classified as NPA as of March 31st 2020.
This is expected to provide valuable support and stability to small businesses.
RBI may agree to one-time loan restructuring scheme for stressed borrowers:
If RBI permits this demand, this will be a big relief to NBFC borrowers since economic activities have slowed to a trickle on account of the prolonged lockdown.
A one-time loan restructuring scheme will allow banks to give more time for borrowers to pay back money, reduce interest rate, even take a haircut or a combination of all these depending upon the nature of the cases.
