SBP extends availability of deferment of principal amount of loans facility till Sept 2020
KARACHI: Considering the fact that COVID-19 pandemic is continuing to stress the cash flow of small and medium sized businesses and households, the State Bank of Pakistan (SBP) has decided to extend the Deferment of Principal Amount facility up till 30th September.
This facility will however be available for Small & Medium Enterprise Financing, Consumer Financing, Housing Finance, Agriculture Finance and Micro financing only, said a statement on Tuesday.
The facility is not being extended to corporates and commercial borrowers since a significant amount of their loans and advances has already been deferred. It is expected that more businesses and households, who were not able to avail the facility, will benefit from the extension.
Amid growing concerns about the potential economic impact of the COVID–19 pandemic, the Central Bank of Pakistan with the collaboration of Pakistan Banks Association (PBA) announced a comprehensive set of measures on March 26, 2020, to help businesses and households to manage their finances. - APP