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CBSL Governor Dr. Nandalal Weerasinghe
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The Central Bank has announced new concessionary measures on the debt of micro, small and medium enterprises (MSMEs) and individuals including fixed income earners and pensioners affected by the present macroeconomic conditions.
Noting that the continuation of these adversities would pose a severe threat on banks recoverability of outstanding loans and advances, CBSL Governor Dr. Nandalal Weerasinghe yesterday requested all banks to restructure and reschedule credit facilities of performing and non-performing borrowers who are adversely affected by the prevailing adverse macroeconomic conditions on the basis of an objective assessment on the future repayment capacity and viability of the business.
Banks have also been requested to suspend recovery actions against non-performing credit facilities that have been classified as non-performing on or after 01.01.2020 on a case by case basis based on an objective assessment on the future repayment capacity/viability of business upon the condition that the borrower submits an acceptable repayment plan.
Banks are also requested to facilitate early settlement of existing performing or rescheduled credit facilities without charging any additional fee i.e. early settlement charges and recovery of future interest applicable to lease facilities.
The CBSL Governor noted that the new concessions and measures are with a view to encouraging MSMEs and individuals with a potential to revive their business/income streams to commence repayment of loans while preventing any elevated strain on the banking sector.