The Central government has decided to extend the Credit Guarantee Scheme for Subordinate Debt (CGSSD) for six months till March 31, 2022.
As per a press release issued by the Ministry of Micro, Small, and Medium Enterprises (MSMEs) on Monday, the scheme, which was to remain operational till September 31, 2021, has been extended for six months on the basis of requests received from the stakeholders.
The government had announced the creation of ‘Distressed Assets Fund- – Subordinate Debt for Stressed MSMEs’ on May 13, 2020, under the Atma Nirbhar Bharat Package
“Accordingly, a scheme viz. ‘CGSSD’ was approved by the government on June 1, 2020, and was subsequently launched on June 24, 2020, to provide credit facilities through lending institutions to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the lending institutions,” it added.
The release said the scheme, which was to remain operational till March 31, 2021, was initially extended till September to keep the avenues of assistance to stressed MSME units open.
Source: Economic Times