BoC processing Rs. 63 b loans under moratorium extension

• Loans from over 16,500 customers considered under phase II
• Under phase I, Rs. 276 b suspension given to 220,000 loans 

Bank of Ceylon (BoC) yesterday said it is processing over Rs. 63 billion worth of loans for about 16,500 customers under the second phase of the Central Bank of Sri Lanka (CBSL) directed moratorium, which was extended till March 2021.

Releasing a statement BoC said this latest round of applications was in addition to the BoC’s own moratorium granted to its customers who were significantly affected by the COVID -19 pandemic. 

“In the first phase of COVID-19 moratoriums, around 220,000 facilities were considered for CBSL directed moratorium concession with an approximate value of Rs. 276 billion for business and individuals in the tourism related businesses, apparel and other export business, plantation, logistics, self-employment and SME sectors.”  

In addition to the moratorium, the BOC has led the way in CBSL’s ‘Saubagya COVID-19 Working Capital Loan Scheme,’ by disbursing Rs. 42.8 billion of the allocated total of Rs. 150 billion by the CBSL. A sum of Rs. 38.7 billion has already been fully disbursed by the bank and 18,513 customers have benefited under this facility, the statement added. 

The Central Bank in November extended the moratorium till March of next year following the second COVID-19 wave in October.

The Central Bank said businesses, proprietors and individuals engaged in tourism, direct and indirect export-related businesses including apparel, IT, tea, spices, plantation, logistic suppliers, event management, and any other sectors that had been adversely affected by work disruption and local and overseas lockdowns resulting from COVID-19 were included.

Furthermore, it includes Small and Medium Enterprises (SMEs) and individuals engaged in business sectors such as manufacturing, non-financial services, agriculture (including processing), construction, value addition and trading businesses including authorised domestic pharmaceutical suppliers. For this purpose, SMEs refer to businesses with an annual turnover up to Rs. 1 billion. 

Debt moratorium extension is allowed for self-employment businesses and individuals who have lost their jobs or income due to the outbreak of COVID-19 as well as foreign currency earners (individuals and businesses) who have to repay loans in foreign currency and whose incomes/businesses have been adversely affected due to the outbreak of COVID-19.

Debt moratorium can be extended to all term loans, leasing facilities, pawning, overdrafts, trade finance or any other credit facilities denominated in rupees and foreign currency, which are in the performing category as at 1 October. In the case of granting moratorium for Saubagya COVID-19 Renaissance Facility under Phase I, II and III, licensed banks have been asked to adhere to the instructions issued by CBSL on 6 November.