Central Bank says Rs.28bn worth concessionary COVID loans approved

• Says stands ready to provide further Rs.120 bn to banks to be lent at 4%

The Central Bank yesterday said it had so far approved 13, 861 loan applications under the Phase-I of Saubagya COVID-19 Renaissance Facility loan scheme, totaling Rs.27.9 billion.
Out of this the licensed banks have already disbursed Rs.14.8 billion among 7,274 affected businesses island-wide as of 24 June 2020. 

These loans carry a concessional interest rate of 4 percent per annum with a grace period of 6-months and a repayment period of 24-months. 

“Further, the Central Bank now stands ready to provide further Rs.120 billion at a concessionary rate of 1 percent (p.a.) to commercial banks for on-lending to the affected businesses at a concessionary rate of 4 percent (p.a.) under the Phase-II of the scheme,” a Central Bank statement said.

Having identified the urgent need of reviving the businesses adversely affected by the COVID-19 outbreak and thereby to promote economic activity in the country, the Central Bank and the government launched a novel refinance facility under the Saubagya (Prosperity) Loan Scheme, named Saubagya COVID-19 Renaissance Facility, as announced on 24 March 2020.