Credit guarantee scheme on
The Central Bank of Sri Lanka (CBSL) introduced a Credit Guarantee
Scheme in January 2010 as one of the key measures to deal with liquidity
constraints confronted by a few registered finance companies (RFCs),
Under this scheme, RFCs and specialized leasing companies (SLCs) are
entitled to obtain loan facilities from banks against their real estate
and financial assets, to enhance their liquidity position to conduct
their normal business operations, with a credit guarantee being provided
by the CBSL.
As some RFCs and SLCs have a large number of real estate assets, the
scheme will provide quick liquidity to such companies, thereby enabling
them to discharge their obligations and improve their businesses faster.
Currently, several RFCs are negotiating with banks to obtain credit
facilities under the scheme.
These negotiations are expected to be finalized within a short period
of time, with the first ever such facility being availed of by
Industrial Finance Ltd on July 15. The Central Bank is actively
encouraging the speedy utilization of the scheme by the RFCs and the
respective banks, and is confident that, with the loan facilities to be
disbursed under the scheme, the relevant RFCs would be able to resume
and/or continue their normal business operations expeditiously.
Through the resumption and revival of their normal business, the RFCs
are expected to be able to meet their creditor obligations, the Central
Bank said. |