$750 million from World Bank to COVID-19 wreaked MSMEs as Stimulus

the world bank has propelled support for the Medium, Small, Micro, Enterprises (MSMEs). As this sector, in particular, has hit the worst of all by COVID-19.

$750 million from World Bank was given to COVID-19 wreaked MSMEs. The International financial crisis reminiscent of the days of the Great Depression and the 2008-09 recession. It has seen international bodies like World Bank swing into action to rescue the countries. Which have been hit by the crisis. This as almost the entire globe is reeling under the blow of the pandemic.

Now, in an emergency to the augmenting crisis. $750 million from World Bank has propelled support for the Medium, Small, Micro, Enterprises (MSMEs). As this sector, in particular hit the worst of all. Firstly the sector’s nature requires communication and transaction on a ground level. Even under circumstances like the one we are currently a part of. Adding to that, this aforementioned sector, and the entities involved in it, had already been dealing with copious amount issues, even before the pandemic hit the world. Therefore, this approval of the infusion of $ 750 million would provide a wiggle room to the industries in this sector.

Advertisement

World Bank Comes At Aid

In a statement to the Economic Times, Junaid Ahmad, World Bank Country Director in India. said that, “The MSME sector is central to India’s growth and job creation and will be key to the pace of India’s economic recovery, post-COVID-19”.

Here, also laid emphasis on the need for Non-Banking Financial Corporations (NBFCs). To make the easing of pressure on these organization swifter and smoother. The World Bank, to date in the wake of the crisis has committed an amount of  $ 2.75 billion. In order to financially espouse the dropping curve of Indian industries. It was only in April, that World Bank announced the amount of $ 1 billion. One of its attempts to help the struggling economy. It later followed it up with another Billion in the month of May.

Apart from this, the World Bank has also helped other countries like Georgia. A country in the intersection between Europe and Asia. With a loan of  $ 50 million dollars in the past few months.