Business Times

CB to guarantee bank loans to finance and leasing cos.

The Monetary Board of the Central Bank of Sri Lanka is establishing a new guarantee scheme for loan facilities provided by banking institutions to registered finance companies (RFCs) and specialized leasing companies (SLCs), in instances where RFCs and SLCs face unforeseen liquidity constraints.
In a statement on Wednesday the bank said in providing these guarantees, the Central Bank will assess the need for such guarantees for the applicant RFC or SLC and the quality of assets mortgaged or assigned in respect of obtaining a loan facility.

The Central Bank will also adopt expeditious procedures and impose certain conditions in respect of providing guarantee facilities under this arrangement, it said. Some RFCs and SLCs have been facing liquidity constraints since early 2009 due to a decline in inflow of new funds and the reluctance of some banking institutions to provide loan facilities to those companies.

As a result of this new scheme, such RFCs and SLCs will now be able to obtain loan facilities from banking institutions against their assets to enhance their liquidity position and to conduct their normal business operations, it said.

The bank said it expects this scheme will enhance inflow of funds to vulnerable RFCs and SLCs and relieve the liquidity constraints within a short period of time thereby enabling them to carry on their normal businesses and to contribute to the economic growth in the country.

Top to the page  |  E-mail  |  views[1]
Other Business Times Articles
IMF says fiscal policy a major challenge
Current account surplus due to rising budget deficit, falling growth
GK depositors protest over tax claims
JKH wants to expand in hotel sector
Accountability and corruption haunts tsunami anniversary
GSP+ reversal: Exporters worried about mid-to-long-term impacts
Colombo bourse index reached all-time record
Comment - Lessons from the Tsunami
Mabroc Kelani Valley Teas: Creating the world’s ethical tea brands
Tapes key to Galleon case, Khan's lawyer says
TRC to dish out LTE, Digital TV and WiMax frequencies next month
Local 28.8 Mbps downlink HSPA trial a 'success'
Coca-Cola employees improve facilities at Ampara school
'ICT for National Development and Integration' next week
Central Bank steps to rescue yet another ailing finance company
Utilities Regulator to ensure safety of power supply in schools
CB to guarantee bank loans to finance and leasing cos.
“Dare to Dream” blog draws in business community
22% UK SMEs want to outsource, disregard negatives - report
Kerala film park offers post production facilities for Lankan movie makers
Sri Lankan Entrepreneur of the Year meets the President
Additional leg-room on Cathay Pacific
Consumers cautious in spending
Credit Cards Vs. Debit Cards
Overspending big concern this Christmas – Business Times poll
Early planning is key to implement new accounting standards
Matchmaking programme completes 15 years
Tsunami-hit villagers of Kiula call for saner counsel at UN Climate Summit
Supreme Court to order the seizure of assets of Lalith Kotelawala
HR managers doubt accuracy of evaluation process - study
New service to care for the elders
Singer proposes Rs.600 million debenture issue to refinance debt
400 OLPC XO laptops to primary school children
Train timetables, crop prices now through GovSMS
Tea export revenue surges at Malwatte Valley Plantations
Mc Currie gets ISO certification
Uva region -- poorest in IT literacy
'Garments Without Guilt' at global meeting


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution