Sri Lanka Central Bank provide credit guarantees for companies

Sri Lanka's Central Bank (CBSL) has launched a scheme to provide credit guarantees to registered finance companies (RFCs) and specialized leasing companies (SLCs) to obtain loan facilities from banks against their real estate and financial assets.



The facility is aimed at enhancing the liquidity position of the companies to conduct their normal business operations, with a credit guarantee being provided by the CBSL.

Currently, several RFCs are negotiating with banks to obtain credit facilities under the scheme, and the negotiations are expected to be finalized within a short period of time, the CBSL says.
Industrial Finance Ltd will be the first of the RFCs to receive the credit facility on Thursday 15th July 2010.
Issuing a statement the Central Bank said it 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 and such situation is expected to be in the best interest of all stakeholders, including depositors, lenders, staff and customers," the Bank said.