CRIB seeks details of debt moratorium holders

The Credit Information Bureau (CRIB) has requested all banks to send details of those who have obtained the moratorium that was declared by the Central Bank (CB) in March.

In the light of the present crisis stemming from the COVID19 pandemic a one- to six-month debt moratorium, depending on the type of credit line ( capital and interest) was directed to commercial banks, specialised banks and leasing companies to be offered to customers.

The debt moratorium will be catering to lease rentals of specified vehicles operated by self-employed persons for six months, personal loans of private sector non-executive employees until the end of this month, all personal loans and lease rentals under the value of Rs.1 million for three months and affected small and medium enterprises, tourism, apparel, plantation and IT-related logistics service providers for six months.

It was also said by the CB that the financial institutions shouldn’t decline a moratorium application solely based on an adverse CRIB record. It also told them to develop reporting modalities in respect of the capital deferment granted under this scheme to performing borrowers so that participation in the scheme will not have an impact on their credit score in the future or be negatively reflected in future CRIB reports.

The CEO of a top commercial bank told the Business Times that this circular by the CRIB came on Wednesday. He said the circular said that details of those who obtain the moratorium should be shown separately. “This may be for transparency purposes as they would like to see this information reported independently,” he said.

The institutions are required to process requests within 45 days from the receipt and the recovery of existing loans from such applicants shall be suspended until processing is completed. They also need to report the details of the moratorium availed by their borrowers to the CB Bank Supervision Department and the Department of Supervision of Non-bank Financial Institutions, as relevant, as at 15th and 30th of each month, within five working days starting this month.

This may be for transparency purposes as they would like to see this information reported independently”

(DEC)