SBP approves Rs238b for 2,958 businesses under Rozgar scheme

State Bank of Pakistan (SBP) under its Rozgar scheme for protecting businesses and employees, working with them, from the impact of COVID-19 has so far approved Rs 238.2 billion for 2,958 businesses.

Similarly, under its refinancing scheme for protecting businesses from the impact of COVID-19, the central bank has so far deferred Rs 659.5 billion principal repayments of loans up to one year.

The bank also allowed restructuring or rescheduling of around Rs207.5 billion so far, according to the updated data of the central bank. The number of borrowers that would benefit from this rescheduling relief has risen to 1,572,428, with outstanding amount of Rs 2.514 billion, it said.

Meanwhile, the bank under this refinancing scheme for hospitals to combat Covid-19, approved financing of Rs7.77 billion for 39 hospitals so far.

As many as 45 hospitals had requested for the financing amounting to Rs13.23 billion.

With respect to progress on refinance scheme for setting up new projects or expansion, the central bank approved 243 projects with an amount of Rs 193.25 billion for which it received requests for 425 projects with amount of Rs 437.15 billion.

Furthermore, from March 20, 2020 to November 20, the Bank had issued fresh currency notes to the commercial banks worth of Rs 1.136 trillion.

Similarly an amount of Rs 32.3 billion was quarantined during the period that was received from hospitals, clinics, and pharmacies. while overall the bank received cash worth of Rs 995 billion which was quarantined for 14 days.

It is pertinent to mention here that in order to combat the impact of COVID-19 and to help the businesses in payment of wages and salaries to their workers and employees and thereby support continued employment in this challenging environment, State Bank of Pakistan (SBP) has introduced a temporary refinance scheme for payment of wages and salaries to the workers and employees of the business concerns.

This Scheme was aimed to ease cash flow constraints of the employers and thereby avoid layoffs. In addition, the SBP had expanded the scope of existing refinancing facilities and introduced a scheme to support hospitals and medical centers to purchase equipment to detect, contain, and treat COVID-19 besides, stimulating investment in new manufacturing plants and machinery, as well as modernization and expansion of existing projects.

Germany smashes debt rule with 180 bn euros in borrowing

Frankfurt am Main, Nov 27 (AFP/APP):Germany, traditionally hostile to government borrowing, will take on 180 billion euros in new debt in 2021 as it grapples with the economic fallout from the coronavirus crisis, according to a draft budget agreed Friday.

After 17 hours of discussion, the parliamentary finance committee approved a total of 179.8 billion euros ($214.4 billion) of new debt for next year, according to a final document seen by AFP.

The agreement further shatters Germany's constitutionally enshrined debt brake rule, with public spending now nearly 500 billion euros, as the government continues to support the economy through the health crisis.

Borrowing in Europe's largest economy will be nearly 84 billion euros more than the finance ministry forecast in September, before the arrival of a damaging second wave of Covid-19.

Chancellor Angela Merkel announced tough new measures for November that closed restaurants, bars, as well as the tourism, leisure and cultural industries.

Earlier this week, Merkel announced the extension of these measures through January unless coronavirus case numbers come down dramatically.

On Friday, Germany passed the milestone of one million cases since the start of the pandemic.

The government has promised 10 billion euros in support of sectors specifically hit by the November measures, dubbed "lockdown light" in the media.

Berlin said it would extend for a month emergency aid to support business most affected by the restrictions.

The impact of the pandemic has forced Merkel's government to temporarily abandon its yearslong dogma of a running a balanced budget.

This year, Germany will borrow 218 billion euros, after the government pledged more than a trillion euros to shield German workers and companies from the virus fallout.

The new debt is "necessary to get our country safely through the once-in-a-century pandemic", said the spokesman for Merkel's CDU party on the budget committee, Eckhardt Rehberg.