Credit Guarantee Scheme for Subordinate Debt (CGSSD): The Union Government has extended the Credit Guarantee Scheme for Subordinate Debt (CGSSD) for Stressed Micro, Small and Medium Enterprises, (MSMEs) up by one more year till March 31, 2023.
- The decision of extension was made on the basis of the requests received from the stakeholders of the scheme.
Background:
- The government announced the creation of ‘Distressed Assets Fund- - Subordinate Debt for Stressed MSMEs’ on May 13, 2020, as part of the Aatmanirbhar Bharat Stimulus package.
- Accordingly, CGSSD was launched by the Government in June 2020 to provide credit facilities through lending institutions to the promoters of stressed MSMEs.
- The scheme is valid for SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions.
- Initially, the scheme was up to March 31, 2021, the government later extended it up to March 31, 2022.
