New Delhi: The government on Wednesday announced a Rs 45,000-crore stimulus package for the non-banking financial companies under Partial Credit Guarantee Scheme (PCGC).
Many NBFCs have a low credit rating, and hence, this liquidity infusion will improve their capital position.
Under the scheme, the government will act as guarantor and bear the first 20 per cent of the loss incurred by the distressed company, Finance Minister Nirmala Sitharaman said.
While many investors have distanced themselves from NBFCs, these non-banking companies are at the helm of banks to finance them. Therefore, another package of Rs 30,000 crore by the government will not put pressure on banks.
“Investments can be made in investment-grade debt securities of NBFCs, housing finance companies and microfinance institutions. These investments will be fully guaranteed by the government,” the finance minister said.
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