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Message: <blockquote data-quote="laknath123" data-source="post: 25257924" data-attributes="member: 37140">covid -19 ණය අයකර නොගන්නා හැටි මහබැංකුව කියයි...මුල් circular එක බා ගත කිරීමට <a href="https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/cdg/bsd_circular_no_5_of_2020_e.pdf" target="_blank">https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/cdg/bsd_circular_no_5_of_2020_e.pdf</a>MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20201RUPEES 50 BILLION, SIX-MONTH RE-FINANCING FACILITY TOSUPPORT COVID-19 HIT BUSINESSES INCLUDINGSELF EMPLOYMENT AND INDIVIDUALS1. Introduction(i) The Central Bank of Sri Lanka has decided to set up the above Re-financing Facilityin order to implement the decisions taken by the Cabinet of Ministers on 20.03.2020to introduce a wide range of fiscal and financial concessions for COVID-19 hitbusiness activities including self-employment businesses and individuals. Amongthese concessions are debt moratorium (capital and interest) and a working capitalloan at the interest rate of 4% p.a. for eligible customers.(ii) The licensed commercial banks, licensed specialised banks, licensed financecompanies and specialised leasing companies (hereinafter referred to as FinancialInstitutions) will be eligible to participate in this re-financing facility to supportCOVID-19 hit businesses including self-employment businesses and individualscommencing 25.03.2020.(iii) This Circular is issued to supplement the Circular No. 04 of 2020 dated 24.03.2020and sets out the operational guidelines to give effect to the re-financing facility.2. General Terms and Conditions of the Financing Facility(i) Eligible businesses/sectors:(a) Tourism, direct and indirect export-related businesses including apparel,IT, tea, spices, plantation and related logistic suppliers that have beenadversely affected by work disruption and overseas lockdowns resultingfrom COVID – 19.(b) Small and Medium Enterprises (SMEs) engaged in business sectors suchas manufacturing, services, agriculture (including processing),construction, value addition and trading businesses including authoriseddomestic pharmaceutical suppliers with turnover below Rs. 1 bn.MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20202(c) Self-employment businesses and individuals who have lost their jobs orincome due to the outbreak of COVID-19.(d) Foreign currency earners (individuals and corporates) who have to repayloans in foreign currency and whose incomes/ businesses have beenadversely affected due to the outbreak of COVID-19.(ii) For the avoidance of doubt, import facilities shall not be permitted under thisre-finance facility, for imports other than pharmaceutical drugs, medicalequipment, food, fertilizer and essential raw materials and machinery andequipment.(iii) Credit facilities to be supported under this Financing Scheme shall be termloans, leasing facilities, pawning, overdrafts and trade finance facilitiesdenominated in Rupees and foreign currency subject to the requirementsspecified.(iv) Financial institutions shall offer concessions under this Scheme to allborrowers who have been affected by work disruption due to COVID – 19 andoverseas lockdowns and requested relief through online facilities or othercommunication arrangements before 30.04.2020. The financial institutionsshall complete processing of such requests within 45 days from the date ofreceipt of the request. Until the processing of requests is concluded recoveryof loans from the respective applicants shall be suspended.3. Concessions for Existing Performing Loans as at 25.03.2020(i) Upon a communication by a borrower requesting concessions under thisscheme on or before 30.04.2020, the financial institutions shall offer a debtmoratorium for the period as given below in respect of all eligible Rupee andforeign currency term loans.(a) A six-month debt moratorium on the leasing rentals of all threewheelers, school vans, lorries, small goods transport vehicles and buses,and related assets such as motor bikes ans taxies operated by the selfemployed/ owners.MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20203(b) A debt moratorium until 30.05.2020 on personal loans granted to allprivate sector non-executive employees.(c) A three-month debt moratorium for all personal loans and leasing rentalsof value less than Rs. 1 million.(d) A six-month debt moratorium for affected industries in small & mediumenterprises, tourism, apparel, plantation, IT and related logistic serviceproviders.(e) A six-month debt moratorium for all other eligible businesses/sectorsspecified under 2 (i) above.(ii) Financial institutions shall extend the existing tenure of loans eligible for debtmoratorium by the respective moratorium period.(iii) Permanent Overdraft facilities falling due for settlement or maturing or arereviewed during the period up to 25.03.2020 shall be extended up to30.09.2020. However, in the case of Temporary Overdraft facilities as at25.03.2020, the expiry shall be extended by two months for eligibleborrowers. Interest rate on such facilities will be capped at 13 percent duringthe extended period.(iv) Eligible trade finance facilities falling due for settlement or maturing or wereunder review during the period up to 25.03.2020 shall be extended up to30.09.2020.(v) Pawing facilities falling due for settlement or maturing during the period upto 25.03.2020 shall be extended up to 30.09.2020.4. Concessions for Existing Non-Performing Loans (NPLs) as at 25.03.2020(i) The penal interest charged up to 25.03.2020 shall be waived off by theconcerned financial institutions.(ii) Rescheduling of loans and advances shall be as follows:(a) Where the borrower has repaid 50% or more of the initial capital, 50%of the accumulated and unpaid interest (after waiver of penal interestreferred to above) of the defaulted instalments up to the date of MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20204consideration by the concerned financial institutions under this refinancing facility shall be deferred. The balance capital outstanding,balance portion of interest of the defaulted instalments and the futureinterest shall be rescheduled over a 3 year period. The deferred interestshall be waived by the financial institution, after the borrower settles therescheduled loans in the manner provided in para (c) and (d) below.(b) Where the borrower has repaid less than 50% of the initial capital, 25%of the accumulated and unpaid interest (after waiver of penal interestreferred to above) of the defaulted instalments up to the date ofconsideration by the financial institution under this re-financing facilityshall be deferred. The balance capital outstanding, balance portion ofinterest of the defaulted instalments and the future interest shall berescheduled over a 3 year period. The deferred interest shall be waivedby the financial institutions concerned, after the borrower settles therescheduled loans in the manner provided in para (c) and (d) below.(c) The balance capital outstanding referred to in paragraphs (a) and (b)above shall be rescheduled and repaid over a period of 3 years.(d) The balance portion of interest of the defaulted instalments and thefuture interest referred to in paragraphs (a) and (b) above shall betransferred to a suspense account and recovered over a period of 3 years.(e) A moratorium up to 30.09.2020 shall be granted.(f) Licensed banks may reclassify NPLs under this Scheme as performingloans and advances provided that the borrower has serviced interest forsix consecutive months during the debt moratorium period, if required.However, in the case of instalments in arrears before rescheduling theNPL facility is less than six months, upgrading to performing categoryshall be done only after the borrower has serviced interest for a periodequal to instalments in arrears before rescheduling the NPL facility.MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20205(iii) Suspension of recovery actions(a) In the case of eligible borrowers who are in the NPL category as at thedate of this Circular, if financial institutions have commenced or givennotice of recovery action under the provisions of the Recovery of Loansby Banks (Special Provisions) Act, No. 4 of 1990 or Mortgage Act No.06 of 1949 as amended or Finance Leasing Act No. 56 of 2000, suchrecovery action will be suspended on condition that the concernedfinancial institution and the client reach a debt re-payment agreement.(b) Financial institutions shall defer passing new resolutions under the aboveActs, for recovery of loans and advances in respect of borrowersparticipating in this Scheme. In instances where resolutions for recoveryhave already been passed, auctioning of assets will be suspended until30.09.2020 in respect of such borrowers who are participants in theScheme.(c) In instances where there are on-going litigations in courts relating torecovery, borrowers will be permitted to participate in the Scheme uponentering into an agreement by submission of affidavit to Courts agreeingto comply with the requirements set out in this Scheme.(d) All financial institutions shall suspend legal action against nonperforming borrowers who have been accepted under this Scheme.5. New Working Capital or Investment Purpose Loan(i) Financial institutions may grant an additional loan or a new loan facility inRupees for working capital or investment purposes subject to the followingconditions, provided that the borrower submits a credible business plan:(a) The working capital purpose loan facility shall be granted to eligibleperforming and non-performing borrowers in Rupees not exceeding Rs.25 mn per bank per borrower and Rs. 10 mn per other financialinstitutions per borrower or 2 months working capital requirement MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20206whichever is higher, based on the requirement for working capital cycle.Such loan shall be repaid over two years at an interest rate equal to 4%p.a. CBSL will subsidise interest cost up to 4% for licensed banks andup to 7% for other financial institutions as a rebate.(b) The investment purpose loan facility shall be granted only by banks andonly for performing borrowers in Rupees not exceeding Rs. 300 mn perbank per borrower to expand business activities. Such loan shall berepaid over five years at an interest rate equal to maximum of AWPLRplus 1.5%.(ii) Financial institutions shall properly evaluate the funding requirement of theborrower and agree on the loan size.(iii) A moratorium for a period 25.03.2020 to 30.09.2020 will be granted for bothworking capital loans and investment loans.(iv) Financial institutions may obtain suitable collateral to mitigate the riskrelating to any additional credit facilities granted under this re-finance facility.6. Repayment of Capital by Banks under Refinance SchemesThe Government has indicated its willingness to defer capital repayments onrefinance loans granted to licensed banks falling due from 01.01.2020 until31.12.2020. However, banks are required to seek extension if required and enter intosupplementary agreements with the relevant Government agency in this regard.7. Reporting to the Credit Information Bureau (CRIB) of Sri Lanka(i) Financial Institutions are expected to have a mechanism not to decline loanapplications solely based on an adverse CRIB record.(ii) Financial Institutions, in consultation with CRIB, shall develop a reportingmodality in respect of the capital deferment granted under this scheme toperforming borrowers, so that participation in the Scheme will not have an MONETARY BOARDCENTRAL BANK OF SRI LANKA 27 March 2020 CIRCULAR No. 05 of 20207impact on the credit score of borrowers in the future, or be negatively reflectedin future CRIB reports.8. Financial institutions shall discontinue charging for cheque returns, stop payments,late payment fee on all credit cards and other credit facilities during the period up to30.09.2020.9. Reporting RequirementFinancial institutions shall report the details of moratorium availed by theirborrowers to the Bank Supervision Department and the Department of Supervisionof Non-bank Financial Institutions, as relevant, as at 15th and 30th of each month,within 5 working days, commencing from 01.05.2020.Prof W.D LakshmanCB Sri lanka</blockquote>

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