Question
Select the correct code about Credit Guarantee Scheme
for Sub-ordinate Debt (CGSSD) Ā 1. It is for the distressed MSME sector. Ā 2. It aims to support promoter(s) of the operational MSMEs which are stressedĀ ĀSolution
The government announced creation of āDistressed Assets Fund- Subordinate Debt for Stressed MSMEsā on 13th May 2020, under the Atma Nirbhar Bharat Package . ā Accordingly, a scheme viz. āCredit Guarantee Scheme for Subordinate Debt ā was approved by the Govt. on 1st June 2020 & the scheme was launched on 24th June. ā This scheme was to remain in operation till 31.03.2021. But now, the Government has decided to extend this scheme for 6 months from 31.03.2021 to 30.09.2021. Ministry of Micro, Small & Medium Enterprises (MSME). Launched on 24th June 2020 as part of Atmanirbhar Bharat Package. The biggest challenge for stressed MSMEs after the pandemic was getting capital either in the form of debt or equity. So, the govt. had announced this scheme of sub-ordinate Debt to the promoters of operational but stressed MSMEs.
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