Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

by SUREKHA GALAGODA

The Government has given six months for borrowers of state banks to pay the loans and honour their debts.

"This will be the first and the last time we will intervene on the repayment of loans on behalf of borrowers," assured the Minister of Rural Economy and Deputy Minister of Finance Bandula Gunawardena last week.

Minister Gunawardena, addressing a news conference, said this was initially introduced as part of the 100 day programme of the Government.

The move gives breathing space to those who could not pay their debts due to economic difficulties.

He said that small and medium scale enterprises who have borrowed less than one million rupees and individuals who have taken less than Rs. 500,000 will be given a grace period of six months.

Secretary to the Treasury Charitha Ratwatte said this was initiated under the 100 day programme on a request made by the Deputy Minister of Finance. "We appreciate the support given by the state banks at a time the Government is trying to revitalise the economy."

General Manger, Bank of Ceylon, Sarath De Silva said this was not a directive by the Government, but a fair request. It is time to go for a negotiated settlement rather than parate executions. He said: "Since we are offering the grace period, we will waive the interest applicable for 100 days too."

He said that domestic private banks have agreed to consider it on a case by case basis.

Deputy General Manager, People's Bank, K. L. Piyasena said: "We used parate executions as the last resort. Now we will extend the grace period and if the whole amount is paid as one instalment, we will give a grace period on interest payments too."

Chairman, State Mortgage and Investment Bank, Dr Gamini Fernando said that there are two categories of middle income earners and lower middle income earners who obtained housing loans from the bank. "We are doing our best to recover these loans at its earliest."

General Manager, HDFC, C.A. Sarathchandra said they have a recovery rate of 97 per cent. "Therefore, this request makes little impact on us. We have reduced the instalments and extended the time given for repayment of the loans."

General Manager, National Savings Bank, E. Narangoda was also present. 

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager