Sri Lanka’s debt moratorium for SMEs is credit negative for Sri Lankan banks and the sovereign because it risks increasing SMEs’ risk appetite and relaxing their attitude toward debt repayments, Moody’s Investors Service said.
In an analysis, the service said that this move, in turn, will undermine banks’ asset quality and constrain the sovereign’s credit profile.
On 13 January, the Central Bank issued guidelines on the debt moratorium for SMEs that the government announced in December last year.
Sri Lanka Digital Media Network
Submit Your Press Release
Get your company news, announcements, launches, appointments and events in front of a wider audience.
NewsDive
Financial Chronicle
Ceylon Independent
Daily FC
Submit Your Press Release
→
Publish Across Our Network
Related: Central Bank issues circular to banks about new credit support scheme for SMEs
Full statement
