CURRENT AFFAIRS

Detailed explanation-1: -NEW DELHI : Centre has extended that credit guarantee scheme for subordinate debt worth ₹20,000 crore for stressed MSMEs till March 31, 2023.

Detailed explanation-2: -The Scheme would be applicable to sub-debt sanctioned under CGSSD for a maximum period of 10 years from the guarantee availment date or March 31, 2023 whichever is earlier, or till an amount of Rs. 20,000 crore of guarantee amount is approved.

Detailed explanation-3: -Ministry of Micro, Small & Medium Enterprises has extended the credit guarantee scheme for subordinate debt (CGSSD) by one more year till March 31, 2023. The decision of extension was made on the basis of the requests received from the stakeholders of the scheme.

Detailed explanation-4: -The objective of the scheme is to provide personal loan through banks to the promoters of stressed MSMEs for infusion as equity / quasi equity in the business eligible for restructuring, as per RBI guidelines for restructuring of stressed MSME advances.

Detailed explanation-5: -The scheme was formally launched on August 30, 2000 and is operational with effect from 1st January 2000. The corpus of CGTMSE is being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs. 1906.55 crore to the corpus of the Trust up to March 31,2010.