In a move to immediately address the liquidity issues and credit needs of around 1.5 million MSME, the World Bank approved a USD 750 million fund to ease operations reeling under the Covid-19 crisis. Through the MSME Emergency Response program, it is supporting the increased flow of finance to the latter. Strengthening the overall financing ecosystem, the World Bank is also supporting NBFCs and small credit banks as effective financial intermediaries. Till date, the World Bank has committed an estimated USD 2.75 billion for supporting India’s emergency Covid-19 response. The World Bank is also looking at engaging with the ministry and the respective states to facilitate capacity development at the cluster level.
