Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» Why AAIC Should trade above RS.50/-
by wisdom79 Today at 7:56 pm

» Positive News
by samaritan Today at 7:16 pm

» Stupid fucking UNP and ranils ass hole economics
by samaritan Today at 7:14 pm

» KAPI (MDT Walkers PLc)
by samaritan Today at 7:12 pm

» Massive Fraud At AEL subsidiry
by reyaz Today at 6:30 pm

» After Advanced level what is
by Arrowrisk Today at 5:58 pm

» Learn To Invest Yourself.
by Asoka Samarakone Today at 5:56 pm

» GOOD SHARES TO BUY
by ThilinaM Today at 5:07 pm

» LOOKOUT FOR SIRA
by Ruwan925 Today at 3:16 pm

» DIVIDEND UPDATES Link
by Beta1 Today at 3:12 pm

» FORUM POLITICIANS
by samaritan Today at 1:57 pm

» BIL පුපුරා යාමට ආසන්නයි
by sanjulanka Today at 10:23 am

» lOFC definitely will hit 6/-
by Teller Today at 1:04 am

» Renuka managemnt Treat SH as Trash
by Sanju121 Yesterday at 5:36 pm

» RAL....RAL, Renuka Agri
by fireshelter Yesterday at 2:32 pm

» Blue Diamonds Voting & Non Voting
by Ahcha Yesterday at 6:35 am

» MULL trade up possibilities
by crs Sat Sep 14, 2019 7:22 pm

» MARA marai
by SECsux Fri Sep 13, 2019 6:22 pm

» SLTL REVALUATION OF ASSETS IS ON............
by Eng Krishantha Fri Sep 13, 2019 5:06 pm

» LIOC shares
by lakmal Fri Sep 13, 2019 12:47 pm

» JKH will touch 175 very soon
by Rare Fri Sep 13, 2019 11:10 am

» ඇවන්ගාඩ් අල්ලස් නඩුවෙන් ගෝඨාභය නිදහස්
by samansilva Fri Sep 13, 2019 12:25 am

» Invest AEL and TKYO return more than 30%...
by samaritan Thu Sep 12, 2019 5:15 pm

» Watch Out for MAL.X
by Cricketman Thu Sep 12, 2019 1:56 pm

» LOOKOUT FOR GLASS
by Sanju121 Thu Sep 12, 2019 1:02 pm

» NEXT RUN LDEV
by Sanju121 Thu Sep 12, 2019 12:28 pm

» BIL. N mandatory offer at Rs 6.80
by Equityinvestor Thu Sep 12, 2019 12:05 pm

» PAP vs RAL
by Teller Thu Sep 12, 2019 11:04 am

» RAL AND KZOO
by Ahcha Thu Sep 12, 2019 10:40 am

» Look PAP Amazing company
by reyaz Thu Sep 12, 2019 10:21 am

» RENUKA CAPITAL PLC KZOO.N0000@2.80
by ThilinaM Thu Sep 12, 2019 9:56 am

» PIRAMAL GLASS (GLAS)
by Sanju121 Thu Sep 12, 2019 9:45 am

» AEL CAPITAL TRUST 24.50?
by samaritan Thu Sep 12, 2019 7:39 am

» Kzoo vs onal
by fireshelter Wed Sep 11, 2019 5:56 pm

» Still you can Enter to CFVF.N0000 :
by Trader321 Wed Sep 11, 2019 4:55 pm

» Only equity stocks are discussed here!
by reyaz Wed Sep 11, 2019 4:36 pm

» AEL is going to 14 again
by samaritan Wed Sep 11, 2019 4:22 pm

» ANNOUNCEMENT OF PRESIDENT ELECTION
by Ahcha Wed Sep 11, 2019 3:05 pm

» SAJITH TO BE NAMED AS THE UNP CANDIDATE
by samaritan Wed Sep 11, 2019 12:46 pm

» Renuka Capital(KZOO) Vs Onal
by Capton KIng Cool Wed Sep 11, 2019 11:54 am

» JKH Investor PresentationReview of FY2019
by reyaz Wed Sep 11, 2019 11:28 am

» How to buy Debentures from Secendary market
by reyaz Wed Sep 11, 2019 10:15 am

» Planning your exit
by evapattern Wed Sep 11, 2019 2:36 am


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka holds rates, state guarantee for gold-backed loans: Central Bank

Sri Lanka holds rates, state guarantee for gold-backed loans: Central Bank

Go down  Message [Page 1 of 1]

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lanka holds rates, state guarantee for gold-backed loans: Central Bank
20 May, 2014 08:00:05
May 20, 2014 (LBO) - Sri Lanka's Central Bank held policy rates at 6.5 and 8.0 percent with private credit showing positive growth in March, and said a government credit guarantee would be available for gold backed loans.

Gold-backed loans from banks have contracted after gold prices fell and borrowers defaulted making banks more cautious to lend.
"In order to counter the effect of the continued decline in pawning advances on productive sectors of the economy, the Monetary Board also granted approval to implement a credit guarantee scheme on pawning advances on behalf of the government," the Central Bank said in its May monetary policy statement.

In March commercial banks had increased rupee denominated loans to private borrowers by 15.3 billion rupees but some repayments of dollar borrowings foreign invested firms, reducing the total to 7.6 billion rupees.
"The sharp decline in pawning advances contributed largely to the continued low growth of credit to the private sector," the Central Bank said.

Octopus

Octopus
Expert
Expert
gold prices further down....! oil prices under control.....!
who is going to mostly hurt and benefit in CSE?

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lanka to give credit guarantee for gold-backed loans
20 May, 2014 08:41:31
May 20, 2014 (LBO) - A credit guarantee scheme covering gold-backed loans or pawning advances will be set up so that banks will have more comfort to lend against the asset, Central Bank Governor Nivard Cabraal said.

"It will be self-funding operation, which will give a comfort to the banks, so that the appetite for gold backed lending will not diminish," he said.
"It will work on a premium will pay which will create the fund."

The Central Bank will contribute an initial 500 million rupees to the fund on behalf of the government.

Lenders are now give about 65 percent of the gold value as loans and the credit guarantee will allow them to loan about 15 percent more, he said.

The coverage will apply to new loans, he said.

The price of gold has been volatile in recent years and fell to around 1300 US dollars an ounce after peaking around 1700 to 1800 dollars in the same year.

Gold-backed loans have been a hassle-free credit scheme used around Sri Lanka, because the collateral can be easily sold to recover defaulted loans, at least until now.

But banks saw defaults rising on the credit when gold prices fell and values fell below the collateral.
Sri Lanka's private credit growth has slackened in 2013 after the end of a balance of payments crisis in 2011/2012 and loan growth became negative in February and March.

Many banks have sharply cut their gold backed loan portfolios in the first quarter. Sampath Bank, a private bank that has lent aggressively against gold saw a net contraction in their entire balance sheet as part of the correction process.

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum