SINGAPORE : Stimulus measures announced by the government last week as part of a ₹20 lakh crore economic package will help ease asset risks for the financial sector but not fully offset the negative impact from coronavirus outbreak, Moody' s Investors Service said on Tuesday.
Among the measures, the most significant is the government guaranteed, automatic and uncollateralised loans to micro, small and medium-sized enterprises (MSMEs).
Such loans will help improve the MSME's near-term liquidity and ease asset risks for the banks and non-bank finance companies (NBFCs) who are the key lenders to the sector.
However, the MSME sector was already under financial strain before the outbreak of the coronavirus because of the gradual slowdown in