CB calls on borrowers to help protect bank liquidity

Saturday, 2 May 2020 01:52 - - {{hitsCtrl.values.hits}}

Wants borrowers to honour instalment payments to ensure liquidity

The Central Bank (CB) yesterday called on borrowers to honour their instalment payments under the debt moratorium to protect bank liquidity.

The appeal came as part of a statement announcing the extension of deadlines for banks to accept applications for debt moratoriums and working capital loans from companies and individuals till 15 May. “These measures require the banks to extend the existing tenure of loans eligible for moratorium by the respective moratorium period. Thus we urge the borrowers to repay the instalments subject to the moratorium during such extended period without any additional cost, so that by receiving such funds, banks will also be able to strengthen their liquidity positions,” the statement added.

Considering the difficulties faced by some customers of financial institutions affected by the COVID-19 pandemic in obtaining certain relief measures, the CB has extended the deadline for submitting requests for debt moratoriums and 4% per annum refinancing facility for two months working capital until 15 May, the CB said.

“Further, where the validity period of cheques valued less than Rs. 500,000 has expired, the banks are required to consider them as valid until 15 May. These extensions were effected through the Circular No. 06 of 2020 dated 28 April,” the monetary institution said.

The eligible businesses and individuals are requested to contact their respective banks with the necessary information and documents on a timely basis if they wish to avail themselves of the relief measures.

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