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75 percent of stimulus package is liquidity boosts and guarantees for banks. Will lenders play ball?

Banks’ reluctance to lend to sectors perceived as risky is unlikely to see a big change following the FM’s announcements

May 18, 2020 / 09:27 AM IST
75 percent of stimulus package is liquidity boosts and guarantees for banks. Will lenders play ball?

Finance Minister Nirmala Sitharaman (File image: Reuters)

Neha Dave Moneycontrol Research In response to the disruption caused by the outbreak of COVID-19 and the subsequent nationwide lockdown of almost 2 months, the Prime Minister announced a Rs 20-lakh crore economic stimulus package equivalent to 10 percent of nation’s GDP. The Finance Minister announced a slew of measures following the Prime Minister’s broad vision that India needs to be “self-reliant” or “Atmanirbhar”.  The economic stimulus package is a combination of monetary and fiscal measures, reforms and includes some already announced...

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