Borrowers must be given support and COVID19 related distress must not impact the lenders’ assessment of their creditworthiness: Finance Minister

Ministry of Finance:

  • Finance Minister Smt. N Sitharaman held a meeting with lenders for expediting resolution of loan accounts and reviewing progress of Emergency Credit Line Guarantee Scheme (ECLGS), Partial Credit Guarantee Scheme(PCGS) 2.0 and Sub-ordinate Debt Scheme.

  • During the meeting, Smt. N Sitharaman impressed upon the lenders that as and when moratorium on loan repayments is lifted, borrowers must be given support and COVID19 related distress must not impact the lenders’ assessment of their creditworthiness.

  • Finance Minister also focused on:

    • Lenders immediately putting in place Board-approved policy for resolution, identifying eligible borrowers and reaching out to them

    • Quick implementation of a sustained resolution plan by lenders for revival of every viable business

  • Under ECLGS more than 42 lakh MSMEs have benefitted with sanctions of approx Rs 1.58 lakh crore.

  • Till date, Rs 1.11 lakh crore has been disbursed in 24 lakh accounts. Standing with the MSMEs in their hour of need

  • Progress under PCGS 2.0 was also reviewed. PSBs have approved for purchase Bonds/CPs worth Rs. 25,055 Cr. of which Rs 13,318 Cr is for Bonds/CPs rated below AA-. Helping lower rated entities becoming competitive again

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