Flood-hit borrowers to get debt relief, new loans under CBSL directive

The Central Bank, in conjunction with licensed banks, presented a pandemic-era style relief package for flood-affected borrowers, including a debt moratorium of 3 to 6 months on a case-by-case basis.

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Under the measures, banks are required to suspend capital and/or interest on existing credit facilities of affected borrowers.

However, banks have been requested not to charge interest above the applicable interest rate on the facility during this period of suspension. They are also to ensure that no interest will be charged on deferred interest payments.

While these relief measures are extended on a case-by-case basis, during the pandemic in 2020 and 2021, the Central Bank provided a blanket moratorium, extended for several rounds due to the prolonged effects of the pandemic on businesses and individuals.