The Central Bank of Sri Lanka (CBSL) has approved 3,985 new loan applications, amounting to Rs. 11,829 million, submitted by licensed banks under the Saubagya COVID-19 renaissance facility Phase II & III during the period 13-23 July 2020.
Issuing a statement, the CBSl said that with the new approvals mentioned above, the cumulative number of loan applications so far approved by the CBSL under the Saubagya COVID-19 renaissance facility increased to 26,291 as of 23rd July 2020.
Similarly, the total value of loans approved by the CBSL increased to Rs. 72,079 million as of 23rd July 2020. The licensed banks had already disbursed Rs. 45,777 million among 18,007 borrowers island-wide as of 23rd July 2020 as shown in Table – 1 below.
The CBSL, in consultation with the Government of Sri Lanka, has introduced this facility in three Phases to provide a total of Rs. 150 billion as working capital loans at 4% per annum interest rate with a repayment period of 24-months, including a grace period of 6-months, to businesses, including self-employment and individuals, adversely affected by the COVID-19 outbreak.
Under Phase 1 of the loan scheme, the CBSL provides refinancing facility to the participating financial institutions (PFIs). Under Phase – II of the loan scheme, the CBSL provides loans to PFIs at 1 % interest rate against collaterals approved by the Monetary Board.
Under Phase III of the loan scheme, PFIs are expected to use their own funds to grant loans to the businesses and / or individuals and the CBSL provides credit guarantee ranging 50%-80% on loans so granted and a 5% per annum interest subsidy for PFIs to cover their credit risk and cost of funds.
COVID 19 affected businesses and individuals can submit their loan applications under the above Loan Scheme to respective banks before 31st August 2020.
Source From asianmirror business
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