HNB ramps up Covid relief with over Rs. 350 bn in loan moratoriums | Sunday Observer

HNB ramps up Covid relief with over Rs. 350 bn in loan moratoriums

19 July, 2020
Jonathan Alles
Jonathan Alles

HNB PLC has ramped up assistance to individuals and enterprises negatively impacted by the COVID-19 pandemic by granting debt moratoriums worth Rs. 350 billion as at the end of June 2020.

HNB has granted over 65,000 moratoriums across the entire spectrum of the bank’s clients; spanning corporate, Small and Medium (SME), micro, and retail customers.

Working in alignment with Government led initiatives, HNB also facilitated Rs. 9.5 billion in Working Capital (WC) loans at a concessionary interest rate of 4% per annum via the Central Bank of Sri Lanka’s ‘Saubhagya COVID -19 Renaissance Facility’ and ‘Credit Guarantee and Interest Subsidy’ Schemes. To support SMEs that were not captured by the Saubhagya fund, HNB also leveraged its own internally generated Rs. 5 billion COVID SME relief fund to disburse loans at a concessionary interest of 8% p.a.

“So far relative to our regional peers, and even several developed nations, Sri Lanka has made commendable progress in mitigating the spread of COVID-19 while facilitating a gradual revival of essential economic activity.

Working in alignment with the Central Bank of Sri Lanka, HNB has sought to do its part during this unprecedented crisis by supporting customers who are impacted by the pandemic.”

“While significant assistance has been provided in terms of concessionary working capital loans and debt moratoriums, there are many more clients especially SMEs that are still facing severe constraints that still require support.

We wish to reassure these customers that HNB will always stand with you in this difficult moment, and provide all possible assistance to ensure that enterprises are able to bridge gaps in their balance sheets in order to secure a strong recovery despite the challenges ahead,” HNB Managing Director/CEO, Jonathan Alles stated.

Under HNB’s COVID relief program, businesses with an annual turnover below Rs. 1 billion will be eligible to apply for loans upto Rs. 50 million in order to meet their most immediate working capital requirements.