The Micro, Small and Medium Enterprises Development Agency (MSMEDA) announced, Sunday, postponement of direct loan payments for its clients in all sectors affected with the Covid-19 crisis. The measures have been put in place until the situation stabilises.
However, clients benefiting from the measure will pay the interest rates agreed upon, in addition to the fees of extending insurance policies and debt services.
MSMEDA has also approved other measures to support small enterprises directly funded by the agency, to enable them to deal with the repercussions of the coronavirus.
The agency will smooth the process for granting credit facilities for enterprises that are currently booming due to the coronavirus’ emergence. These include disinfectant and detergent production factories, as well as medical, hygiene, disinfection, and sterilisation products supply chains. These steps are to ensure these sectors have the finance to raise their production rates. This measure only applies to economic activities that were not negatively affected by the spread of the coronavirus, and are able to pay their dues, the agency said in a statement Sunday.
MSMEDA advised its clients to take heed of the loan deferment only in the event of real damage and stagnation due to the ongoing crisis. For projects not significantly harmed, the agency recommended they continue to pay regularly to avoid accumulation of interest and additional charges that may affect their profits or productivity.
The agency indicated that if a customer desires not to postpone his loan payment, he must submit a written request.
As for loan requests currently under study, the agency will make sure they would not be affected by the current circumstances.
Executive Director of MSMEDA, Nevine Gamea, emphasised that the agency will support its clients with all financial or non-financial means until the life returns to normal, pointing out that the main goal of the agency is not to finance small projects only, but to ensure their continuity, stability, and ability to face various economic challenges.