Government announces package to double bank credit for SMEs
Yesterday, the government announced a major package for doubling bank credit to small- and medium-sized companies (SMEs) to Rs 1,35,000 crore, from Rs 67,600 crore last fiscal year, in 5 years and reducing their debt burden. The policy package, which was tabled in Parliament by Finance Minister P Chidambaram, is aimed at providing relief to the sector and making it globally competitive. The package envisages at least 20 per cent growth in credit flow to SMEs with the objective of doubling loans to the sector by 2009-10. The Reserve Bank will also issue guidelines for revamping the debts of viable SMEs on the lines of a Corporate Debt Restructuring mechanism, applicable to big companies.
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