Regulatory Alerts2022-12-01
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Circular dated November 3, 2022 regarding instructions for sustainable financing
The document clarifies the discontinuation of the Industrial, Agricultural, and Contracting Private Sector Initiative, which offered a decreasing interest rate of 8%. It mandates that banks must not renew or extend existing loans under this initiative, nor issue new loans under its framework. Furthermore, banks are required to apply prevailing market interest rates to all future transactions related to these loans, including any restructuring or refinancing.
Supplementary to the Circular dated November 21, 2022 regarding the Prime Minister's Council decision concerning only the Central Bank's initiatives with low returns, the following clarifications are provided regarding the discontinuation of the Industrial, Agricultural, and Contracting Private Sector Initiative (at a decreasing interest rate of 8%).
| Initiative | Explanation | Date |
|---|---|---|
| Industrial, Agricultural, and Contracting Private Sector Initiative (at a decreasing interest rate of 8%) | The initiative has been discontinued. | November 20, 2022 |
Confirmation is given of the following:
- The possibility of renewing or extending existing loans under the initiative is prohibited.
- The initiative is discontinued for new loans under the initiative's framework.
- The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing.
- The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing, for a period of one year.
- The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing, for a period of one year.
- The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing, for a period of one year.
The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing, for a period of one year.
The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing, for a period of one year.
The prevailing market interest rates shall apply to all future transactions related to the aforementioned loans, including any restructuring or refinancing, for a period of one year.
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