Banks considering Rs.101bn tourism sector loan relief

Banks are making progress in processing moratoriums on loans granted to the tourism sector, as the sector seeks moratorium on loans worth of Rs. 101 billion. 

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday revealed that banks have approved 945 requests for moratoriums on loans taken by the tourism sector, while another 2696 applications are being processed. 

“A high proportion of these requests will get approval,” he said.

However, he admitted that the progress in granting working capital loans are moving at snail’s pace with many banks reluctant to take risks. 

Hence, he revealed that the government is currently working out the details of loan schemes which come with a 75 percent government guarantee. The loan scheme will have a threshold of Rs. 1.5 million. 

“The CB will assist to monitor the scheme through three State banks,” the Governor added.

However, he acknowledged that already there’s pressure from the tourism industry to extend the threshold to above Rs 1.5 million.