The ministry last week announced a six-month moratorium on parate executions but stopped short from adjusting the provisioning requirements of all banks.
rnrnldblquote This is the first and the last time we are appealing to all banks,
dblquote Deputy Finance Minister, Bandula Gunawardene told reporters.
rnrnldblquote We don
quote t want to damage the lending culture by promoting willful defaulters. It
quote s a method of giving people some breathing space people to help restructure their businesses,
dblquote he said.
rnrnParate executions or the foreclosure on default loans by banks, would not apply to companies who have borrowed under Rs. 1 mn as well as entrepreneurs who have borrowed up to Rs. 500,000 as at March 31.
rnrnState banks, which lend around 55 percent of the total loans disbursed in the country, have agreed to allow a 100-day moratorium on interest payments, Gunawardene said.
rnrnldblquote If borrowers repay their loans within the period, we would reduced some of the interest charge