Credit support to accelerate economic growth extended | Daily News


 

Credit support to accelerate economic growth extended

The SME Loan Deferment scheme announced by the government has been changed to cover a broader set of borrowers. Accordingly, the Central Bank issued a circular issued on January 30 revoking Circular No. 01 of 2020 on Credit Support to Accelerate Economic Growth. Circular No. 02 of 2020 is a similar document with minor changes.

The remit of the scheme has removed the lower threshold to qualify for non-performing loans. The circular states‘in the case of SMEs which are in the NPL category as at December 31, 2019 the lower limit of annual turnover, i.e., Rs. 16 mn, shall not apply.’

The sectors of SME have also been widened to include trading firms. The circular states ‘in the case of SMEs which are in the NPL category as at December 31, 2019, the business sectors supported under this scheme shall also include value addition businesses and trading.’ Licensed banks shall offer the credit support scheme to all eligible borrowers upon a written request being made by such borrowers on or before 10.02.2020 and operationalize the scheme by March 31, 2020.

 


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