Cash in billions for COVID-hit biz

• Over 40,000 get Rs. 133b out of 178 b approved for 62,000 applicants from Saubagya COVID-19 
• Renaissance facility
• Bank of Ceylon leads in approvals and disbursements
• Leading private sector banks follow suit
• Given high demand, CB approves beyond original limit of Rs. 150 b 

Thousands of COVID-hit businesses have been supported so far with billions in cash combined under the concessionary working capital support scheme, the Central Bank announced on Friday. 

It revealed that as of 15 October, 61,907 loan- approved applications were received from COVID-19 affected businesses. These applications were for a total of Rs. 177.9 billion and registered under the three phases of the Saubagya COVID-19 Renaissance Facility.

“So far, the Licensed Banks have released loans amounting to Rs. 133,192 billion among 45,582 affected businesses islandwide,” the Central Bank said. 

It said Phase I of the Loan Scheme was implemented with effect from 1 April. Both Phase II and

III of the Loan Scheme were introduced with effect from 1 July. The intention of these schemes was to provide a total of Rs. 150 billion as working capital loans at an interest rate of 4% per annum. These loans enjoyed a repayment period of 24-months, including a grace period of six months. The recipients were the businesses, including self-employment and individuals adversely affected by the COVID-19 outbreak.

“In view of the large number of requests received from the affected businesses, the Central Bank decided to accept applications regardless of the Rs. 150 billion limit originally envisaged,” the Central Bank said, adding that all applications of the affected businesses received up to the announced deadline were therefore served through the Loan Scheme.

In the previous update by the Central Bank as of 18 August, there were 36,489 applications seeking Rs. 100 billion, in support of which Rs. 68.6 billion had been disbursed among 25,365 applicants. This means over 48% of the disbursements had taken place in the past two months.

The working capital support is in addition to debt capital and interest servicing moratorium offered until the end of September for COVID-hit enterprises and individuals upon request.