CBSL approves Rs.11,829 m in loans | Sunday Observer
Saubagya scheme

CBSL approves Rs.11,829 m in loans

2 August, 2020

The Central Bank of Sri Lanka (CBSL) has approved 3,985 loan applications, amounting to Rs. 11,829 million, submitted by licensed banks under the Saubagya Covid-19 renaissance facility Phase II and III from  13-23 July 13-23. 

With the new approvals, the cumulative number of loan applications approved by the CBSL under the Saubagya facility increased to 26,291 as of July 23. Similarly, the total value of loans approved by the CBSL increased to Rs. 72,079 million as of July 23.   The CBSL, in consultation with the Government, s introduced this facility in three Phases to provide Rs. 150 billion as working capital loans at an interest rate of 4% per annum with a repayment period of 24 months, including a grace period of six months, to businesses, including self employed and individuals, adversely affected by the Covid-19 outbreak. Under Phase 1 of the loan scheme, the CBSL provides refinancing facilities to the participating financial institutions (PFIs).   Under Phase II, the CBSL provides loans to PFIs at 1 % interest rate against collaterals approved by the Monetary Board. Under Phase III, PFIs are expected to use their own funds to grant loans to the businesses and or individuals and the CBSL provides credit guarantee ranging from 50%-80% on loans so granted and a 5% per annum interest subsidy for PFIs to cover their credit risk and cost of funds.