Categories: Business

Economic package to help ease asset risk says moodys


Moodys on economic package

New Delhi Moody's Investors Service said on Tuesday that the recently announced economic package of Rs 20 lakh by the government will reduce the risk of assets for financial institutions, but will not completely eliminate the negative impact of Kovid-19. The government last week announced a package of assistance of Rs 3.70 lakh crore for micro, small and medium industries (MSME). In addition, a support package of Rs 75,000 crore was announced for Non-Banking Financial Companies (NBFCs) and Rs 90,000 crore for power distribution companies.

Moody's said on these measures that the package would help reduce the risk of assets for the financial sector, but they would not be able to completely overcome the negative effects of the corona virus. Regarding the MSME package, the rating agency said that the region was already under stress before the Corona virus outbreak and cash woes will increase as economic growth slows. Regarding NBFC's measures, the comment stated that this help is much lower than the immediate liquidity requirements of these companies.

This post was published on May 19, 2020 6:21 pm

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