Govt declares a special liquidity regime in support of NBFCs emphasised.
Financial Minister Nirmala Sitharaman, for troubled non-banking finance firms (NBFCs), housing finance companies (HFCs) and the microfinance companies (MFIs), declared the unique liquidity scheme of Rs 30.000 crore.
Sitharaman said the state will launch a special liquidity scheme since it is difficult for NBFCs and other small financing companies to raise money on the debt market.
'Investing in both primary and secondary market operations will be made under this scheme in the NBFC / HFC / MFIs investor-grade debt paper,' she said.
It will also add to RBI and govt liquidity stimulus measures and government securities will be "completely guaranteed."
"It would provide NBFCs / HFC / MFIs and mutual funds with liquidity support and build market trust," she said.
Scheme 2.0 for partial loan guarantee.
The guarantor, i.e., the Government of India, will take first 20% of the loss. AA document and a document suitable for purchase, plus an unrated report. This structure would contribute to Rs 45,000 crores liquidity, "she added.
The government also introduced a range of measures for the stressed MSME sector that have been badly affected by the lock-out of coronaviruses.
As part of the government's RS 20 lakh crore economic stimulus programme, Sitharaman has proposed tax cuts and liquidity supports to many industries.