CURRENT AFFAIRS

Detailed explanation-1: -Explanation: ‘Credit guarantee scheme for subordinate debt (CGSSD)’ is implemented by the Ministry of MSME. The Ministry has extended the CGSSD by one more year till March 31, 2023.

Detailed explanation-2: -Credit Guarantee Scheme for Subordinate Debt (CGSSD) extended upto 31.03. 2023. Posted On: 14 MAR 2022 5:35PM by PIB Delhi. Government announced creation of ‘Distressed Assets Fund- - Subordinate Debt for Stressed MSMEs’ on 13th May, 2020, under the Aatma Nirbhar Bharat Package.

Detailed explanation-3: -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-4: -Purpose of the Scheme: 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: -Credit Guarantee Scheme for Subordinate Debt (CGSSD) - With this help, the MSMEs will continue to function, provide jobs and contribute in National Economy. Promoter(s) of the MSMEs will be given credit equal to 15% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.