Government extends Subordinate Debt Credit Guarantee Scheme until 31st March 2023

Government extends Subordinate Debt Credit Guarantee Scheme until 31st March 2023 On May 13, 2020, the government announced the establishment of the 'Distressed Assets Fund- - Subordinate Debt for Stressed MSMEs' as part of the Aatma Nirbhar Bharat Package. As a result, the Government approved the 'Credit Guarantee Scheme for Subordinate Debt' on June 1st, 2020, and the scheme was launched on June 24th, 2020 to provide credit facility through lending institutions to promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the lending institutions' books. Initially, the scheme was valid until March 31, 2021. The government had already extended this scheme till 31.03.2022, in order to keep avenues of support open to strained MSME Units. Now, based on the recommendations of the system's stakeholders, the government has decided to prolong the scheme until March 31, 2023.