Monitory board of central bank Sri Lanka (CBSL) has decided to provide the relief measures to all businesses who are adversely affected by the prevailing Covid-19 outbreak, and all Financial Institutions must implement a debt moratorium for affected industries.
Having identified the national importance of reviving the businesses adversely affected by the COVID-19 outbreak in order to contain the hampering of living conditions of the Sri Lankans and the economic growth of the country as a whole, CBSL under the instructions of the Government of Sri Lanka has introduced a new refinance facility for the businesses adversely affected by the covid-19 outbreak, under the Saubagya (Prosperity) Loan Scheme (‘Saubagya Covid-19 Renaissance Facility’)
Required Documents for working capital Loan
- Description of the COVID-19 effect on your business, mitigating action taken and future business plan to improve the cash flows (Cashflow predictions).
- Current outstanding dentros’ information
- Stock position of the business (Number of months’ stocks)
- Current status of the buyers and supplies and their future plans to continue.
- Calculation of two months working capital requirements
- Working capital loans requested from other banks
- Details of the securities to be provided to the bank for the additional WC facilities
- Other bank details with securities provided
- Details of sales proceeds assigned to other banks (if applicable)
- Audited/ Management Financial Statement for FYE 31 March 2019 with Management account up to 31st March 2020 or latest available For FY 2019/20
- Asset declaration of Directors / partners / Proprietors of the business
Main Features of ‘Saubagya Covid – 19 Renaissance Facility’
a. All island
b.Two months working capital requirement
c. Eligible sub-borrowers
* Any Income Generating Activity/Economic Activity conducted/carried prior to the COVID-19 outbreak, as stated in the Section 2 of the Monetary Board Circular No. 05 of 2020.
* Sub-loans will be granted to facilitate working capital requirements of the eligible sub-borrowers for their existing Income Generating/Economic Activity.
d. Interest Rate payable to the PFI by the Sub-Borrower
4% per annum
e. Grace Period
1. Maximum duration of six (06) months depending on the nature of the activity
2. Sub-borrowers are not required to pay both capital and interest during the grace period
f. Repayment Period
Maximum duration of twenty-four (24) months including the grace period
The viability of the economic activity should be given priority. However, PFIs may obtain suitable collateral to mitigate the credit risk relating to credit facilities.
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