Banks receive over 11,000 applications under credit support scheme; tourism relief package tops Rs.120bn

During close to a four-week period, which ended on February 10, the banks in total have received slightly over 11,000 applications or business cases from small and medium-sized enterprises (SMEs) across the county, seeking loan moratoriums.

Responding to a question at the presser held at the Central Bank following the announcement of the monetary policy decision for March, the Central Bank said the banks are currently evaluating the credibility of such cases, after which the companies would be able to enjoy delaying of capital payments on their loans for 12 months. 

“Under the current loan relief scheme, we have so far received about 11,000 applications – 6,500 from performing clients and 4,600 from non-performing clients,” Central Bank Deputy Governor H.A. Karunaratne said. 

The banks will process the applications until March 31, upon which the eligible businesses will be entitled to the moratorium. 

The Central Bank on January 13 issued a circular under the title, ‘Credit support to accelerate economic growth’, giving life to a government policy to provide short-term stimulus to SMEs, most of which were in the brink of collapse. 

After several rounds of discussions among the policymakers in the government, the Central Bank and banks, a consensus was reached to freeze the capital payments of loans up to Rs.300 million, for a period of 12 months, up to December 31, 2020. 

Meanwhile, it was also disclosed that under the earlier loan relief package offered to the tourism sector in the immediate aftermath of the Easter attacks, the sector is enjoying moratoriums for loans running into Rs.120 billion. 

Under the circular, concessions granted to the tourism industry in May, last year, a moratorium was granted for tourism sector establishments on both capital and interests, up to March 31, 2020.