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| Sunday, 10 April 2005 |
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Debt moratorium to maintain economic stability by Gamini Warushamana The money saved as a result of the debt moratorium given by donor countries and international financial institutions will be used to maintain economic stability and not for disbursement among individuals affected by the tsunami, Secretary to the Treasury Dr. P.B. Jayasundera. told a press conference organised by the Task Force for Rebuilding The Nation (TAFREN). He said the debt moratorium helps to ease the BOP position in the country, maintain foreign reserves without decline and prevents the devaluation of the Rupee. Since the country has to spend more on imports for reconstruction and rehabilitation, the deterioration of reserves and adverse impact on BOP position is inevitable. Therefore it is essential to maintain overall economic stability and continue the development process in the country. That is the rationale behind providing the debt moratorium by the donors, he said. Debt relief is also helpful to continue other development activities in the country because all immediate expenditure was borne by the government. Donor pledges were not converted immediately to commitments and disbursements. The monthly payment of Rs. 5,000 to each affected family and the Rs. 375 weekly payment for affected families were met by the Government. The Government spent money on rescue and relief operations and to provide interim settlement. Micro financing schemes already started by the Government are funded by our own money, Jayasundera said. Around 234,000 beneficiaries will receive a Rs. 5,000 monthly while nearly 811,000 beneficiaries will get Rs. 375 weekly. The Government has taken effective steps to restore economic activities and help re-start industries in tsunami affected areas. The Susahana loan scheme of Rs. 5 billion was started for micro, small and medium industries. Loans for 1,300 beneficiaries valued at Rs. 550 million have been approved and Rs. 445 million has been disbursed among 1,204 beneficiaries. Another loan scheme of Rs. 700 million for micro industries is now operational through the National Development Trust Fund. Agreements to the value of Rs. 261 million have been signed with partner organisations and Rs. 75 million has been disbursed among nine partner organisations. |
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