Home / Front Page/ Govt. tells SMEs to submit moratorium applications by 31 Jan.

Govt. tells SMEs to submit moratorium applications by 31 Jan.


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 21 January 2020 00:19


 


  • Finance Ministry issues statement calling on companies to submit paperwork 
  • Reiterates working capital, debt restructuring and additional loans available  

The Finance Ministry yesterday called on all Small and Medium Enterprises (SMEs) wishing to avail themselves of the Government’s moratorium to submit their applications to their relevant bank branches before the end of this month. 

The deadline for the applications is 31 January, the Finance Ministry said in a statement, pointing out that SMEs that had taken loans less than Rs. 300 million were eligible to have their loans restructured under this program. 

Banks have already stopped taking legal measures against companies that had stopped making their monthly payments and also suspended penalties on companies. The statement also said a circular from the Central Bank had also been issued to update the banks on the moratorium. 

“It is essential that companies notify banks of their intention to avail themselves of the moratorium in writing before 31 January. Under this scheme, if a company has repaid 50% of its loan then 50% of its remaining interest rate will be written off and the time to repay the loan will be doubled. Companies will also be given working capital under a guarantee provided by the Central Bank,” the Finance Ministry said. 

Companies that have maintained loan repayments will be given an additional year to complete their repayments and they can also obtain additional loans up to Rs. 300 million, the Finance Ministry added. 

The moratorium was announced by the Government in December. This, together with the stimulus package presented shortly after the Presidential Elections, is expected by the Government to boost demand and drive growth. The Central Bank estimates Sri Lanka grew at less than 3% in 2019.      

 

SME debt moratorium credit negative for banks: Moody’s


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

China’s virus shutdown will hurt growth abroad

Friday, 28 February 2020

Many affluent Chinese fearful of being infected by the coronavirus and being quarantined by the State are staying home. Many companies and countries around the world are linked to the Chinese economy, which is likely to have far-reaching consequences


The reality of the system

Friday, 28 February 2020

The whole system of the country which has been crumbling is now on the verge of near collapse. The political regime, bureaucracy, intellectuals and the society in general did not have a sufficiently developed political imagination to understand the n


Writing on the wall

Thursday, 27 February 2020

Quick! Pick between reading this and opting to do something that really makes you happy. I suspect 99% of you would be more fulfilled getting to work half-an-hour earlier, going to market or school sooner than later, or simply goofing off at home or


Geneva: Right cause, wrong tactics

Thursday, 27 February 2020

The Geneva 2015 resolution is a hidden tripwire linked to a maze of claymore mines, some buried, some planted in ditches, others nested in trees. When this article appears, Sri Lanka may have nudged that tripwire. There was another, smarter, safer wa


Columnists More