Peoples Bank says it will consider lowering interest rates on some Rs. 12 billion outstanding from the Ceylon Electricity Board, if a proposed debt-restructuring plan seeking payment guarantees for part of the loan goes through.
The debt restructuring plan covers a Rs. 7 billion medium term loan, to be eventually settled by tapping into CEBs monthly collections. rn
rnThe proposal seeking initial consent for the debt restructuring from CEBs management is being discussed this week, a senior Peoples Bank official told Lanka Business Online on Tuesday. rn
rnThe debt restructuring is a key component in the Banks efforts to clean up its balance sheet.rn
rnSources said the Bank was keen to reduce its single borrower exposures by restructuring loans to large entities like the CEB.rn
rnPeoples Bank posted around a Rs 1.1 billion profit (less taxes) after earlier announcing a Rs. 500 million loss for its financial year ending December 31, 2002. rn
rnIn 2001, the bank recorded an impressive Rs. 345.29 m