Sitharaman announces Rs 30,000 crore special liquidity scheme for NBFCs, MFIs
May 13, 2020
New Delhi [India], May 13 : Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 30,000 crore special liquidity scheme for non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs).
Under this scheme, the investment will be made in both primary and secondary market transactions in investment-grade debt papers of NBFCs, HFCs and MFIs.
AA-rated, below-rated and unrated papers will be eligible for this investment. The securities will be fully guaranteed by the government.
"This will provide liquidity support for NBFCs, HFCs, MFIs and mutual funds, and create confidence in the market," said Sitharaman.
The Finance Minister also announced an extension of the partial credit guarantee scheme worth Rs 45,000 crore under which the first 20 per cent loss in debt papers will be borne by the government.
