Budget 2022: MSMEs may get credit guarantee, better deal in IBC cases

Banks and MSME industry representatives have sought support for the sector in the line of ECLGS, a measure introduced early in the pandemic

With a large number of micro, small, and medium enterprises (MSMEs) continuing to reel from the impact of the ongoing Covid-19 pandemic, banks and companies have represented to the finance ministry for another relief package for the sector.
 
According to bankers, the third wave of the Covid-19 pandemic, mainly driven by the Omicron variant, has impacted the MSME sector adversely. Banks and MSME industry representatives have sought support for the sector in the line of Emergency Credit Line Guarantee Scheme (ECLGS), a measure introduced early in the pandemic.
 
The ECLGS scheme entails 100 per cent credit guarantee by