Mr Ashwani Bhatia, MD & CEO, SBI Mutual Fund.
“The measures announced by the Finance Minister provide a much-needed boost for the MSMEs. The measures will provide liquidity support to MSMEs through provision of Rs 3 lakh crore collateral-free automatic loans with credit guarantee to banks and NBFCs.
NBFCs and HFCs will benefit greatly through partial credit guarantee schemes and special liquidity schemes that will be fully guaranteed by the Government of India. This will kick-start the illiquid Corporate Bond market and give confidence to the Mutual Fund industry. I believe that corporate bond spreads for papers rated AA and below will see a compression tomorrow.
To my mind, if MSMEs are able to get their dues within 45 days from Government and CPSEs, this measure alone will provide quickest support to manufacturing units. The announcement to partially release bank guarantees to the extent of contracts completed will further ease working capital requirements”.
