Sri Lanka COVID-19 debt moratorium extended till April 2020

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By Editor_1
-J. Sujeewakumar/ENCL
0

COLOMBO – Sri Lanka has extended a debt moratorium given to customers of banks and finance companies from October 1, 2020 to March 31, 2021, the central bank said.

However, customers of banks have to request the extension before November 30 and finance companies by November 25. The original debt moratorium expired on September 31.

The central bank said capital and interest due for the period has to be converted to a term loan at Treasury bill yield +1, with a minimum repayment period of 24 months, adding that finance companies can charge 364 day T-bill plus 5.5% and 11.5%.

For forex loans, the central bank said the rate will be the contracted rate or below the current market rate.

The due date for pawning loans will also be extended to April 1, 2021, it said.

The central bank said banks have to waive penal interest accrued for the moratorium period.

-economynext.com

Editor_1
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