May 10, 2020

Leasing installments grow larger amid moratorium relief? Featured

In the wake of the Covid-19 crisis, the Finance ministry had announced that a six-month debt moratorium was extended to finance and leasing companies.

However, creditors complain that finance companies have added the six months worth of installments to the usual value of the installment, resulting in a larger installment.

Accordingly, the installment they usually pay would be increased from August, after the moratorium period ends.

Doing this instead of extending the repayment period, will only put them in a tighter spot, creditors add.

Wait for new govt. to give relief - Shehan

Meanwhile, former state Finance Minister - Shehan Semasinghe has told the media to wait until a new government comes into power, to address the issue.

Until then, officials of the Ministry of Finance will be briefed on this regard, he said.

No moratorium if there are payment arrears?

Meanwhile, creditors also say that some leasing companies have denied the moratorium relief measure to those whose having payment arrears.

Speaking to 'Sri Lanka Mirror', a chief of the leasing unit of a major bank said that only 27% of creditors obtaining leasing facilities make their payments on time. The remaining 73% all have arrears payments, he adds.

In this present situation, leasing companies as well as the government and Central Bank have come under fire, on social media.

Several such posts are shown below :