CB to lift 70% LTV on vehicles

The Central Bank will soon lift the imposition of maximum loan-to-value (LTV) ratio of 70% on vehicles since imports are tapering off.

Speaking at the Ease of Doing Business Forum on Wednesday, in response to a question from a private company, Central Bank Governor Arjuna Mahendran stated that it was a ‘temporary’ measure adopted to clamp down on the vehicle imports weighing on the country’s balance of payment (BOP).

“It was not a permanent solution. We feared a bubble situation in the market and wanted a measure to curb the unsustainable level of vehicle imports,” he pointed out.