Tuesday Dec 24, 2024
Tuesday Dec 24, 2024
Monday, 10 May 2021 01:41 - - {{hitsCtrl.values.hits}}
The country’s businesses and individuals impacted by the COVID-19 pandemic had been granted Rs. 180 billion in concessionary working capital by the banking sector, latest Central Bank data reveals.
Support extended under three phases of the Saubhagya COVID -19 Renaissance Facility (SCRF) was Rs. 179.3 billion for 62,573 beneficiaries at the end-December 2020.
Central Bank said about 52% of the total working capital approved was to the services sector, while about 33% and 15% were provided to the SMEs and individuals in the industry sector and the agriculture sector, respectively.
The SCRF was among extraordinary measures taken by the Central Bank to cope with the COVID-19 pandemic in the country since March 2020. Working capital loans were provided at a concessionary interest rate of 4% to the borrower with a repayment period of 24-months, including a grace period of six months to COVID-19 affected MSMEs, including self-employed individuals. The repayment period was extended subsequently.
The Central Bank provides credit guarantee ranging 50-80% on loans granted and a 5% per annum interest subsidy for Participating Financial Institutions of SCRF to cover their credit risk and cost of funds in terms of Section 108 of the Monetary Law Act.
In 2020, growth in loans and advances of the banking sector improved by 11.9% to Rs. 9.09 trillion as against 5.6% in 2019.
