SBP unveils debt relief measures for individuals, businesses

SBP in collaboration with the other banks of Pakistan has unveiled a comprehensive package to stakeholders including households and businesses (microfinance, SMEs, corporate, commercial, retail, and agriculture) to manage their finances in the wake of the coronavirus-driven economic slowdown. SBP has reduced the Capital Conservation Buffer (CCB) from its existing level of 2.5% to 1.5% enabling banks to lend an additional PKR 800Bn. Existing regulatory retail limit of PKR 125Mn per SME has been permanently enhanced to PKR 180Mn. It has also increased individuals’ borrowing limits for one year. It relaxed Debt Burden Ratio (DBR) for consumer loans from 50% to 60% which will allow around 2.3Mn individuals to borrow more from banks.