CB says Rs. 28 b loans at 4% approved for COVID-19-hit 13,861 biz

Thursday, 25 June 2020 03:14 - - {{hitsCtrl.values.hits}}

Stands ready to release Rs. 120 b
Licensed banks have already disbursed Rs. 14.8 b among 7,274 affected businesses
Loans carry concessional interest rate of 4% with grace period of 6 months and repayment period of 24 months

The Central Bank has approved 13,861 loan applications under the Phase-I of the refinancing scheme, totalling Rs. 27.9 billion, the Central Bank said yesterday.

Having identified the urgent need of reviving the businesses adversely affected by the COVID-19 outbreak and thereby to promote economic activity in the country, the Central Bank and the Government of Sri Lanka launched a novel refinance facility under the Saubagya (Prosperity) Loan Scheme, named Saubagya COVID-19 Renaissance Facility, as announced on 24 March.

The Central Bank has approved 13,861 loan applications under the Phase-I of this Scheme, totalling Rs. 27.9 billion, out of which the licensed banks have already disbursed Rs. 14.8 billion among 7,274 affected businesses islandwide as of 24 June. These loans carry a concessional interest rate of 4% (p.a.) with a grace period of six months and a repayment period of 24 months.

Further, the Central Bank now stands ready to provide further Rs. 120 billion at a concessionary rate of 1% (p.a.) to commercial banks for on-lending to the affected businesses at a concessionary rate of 4% (p.a.) under the Phase-II of the Scheme.