The Central Bank (CB) and the Government launched a refinance facility under the Saubagya (Prosperity) loan scheme, named Saubagya Covid-19 Renaissance Facility in April to revive businesses adversely affected by the Covid-19 outbreak and thereby promote economic activity.
Under Phase-I of this scheme, the Bank has approved 13,861 loan applications, totalling Rs. 27.9 billion, of which the licensed banks have already disbursed Rs. 14.8 billion among 7,274 affected businesses islandwide as at June 24. These loans carry a concessional interest rate of four percent (p.a.) with a grace period of six-months and a repayment period of 24-months.
The Central Bank will provide a further Rs. 120 billion at a concessionary rate of 1 percent (p.a.) to commercial banks for on-lending to affected businesses at a concessionary rate of 4 percent (p.a.) under Phase-II of the Scheme. - Central Bank media release