Friday, 19 July 2019

Indian govt seeks to tap foreign lenders for loans to its small firms-sources

NEW DELHI: India's government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own.

The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises, one of the officials,  ..
The World Bank's India spokesperson did not reply to an email seeking comment. 
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The official said the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation. 
“We are exploring, we are having discussions with various funding agencies if something can be done (for small and medium firms),

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