Our auditors PWC [PricewaterhouseCoopers] has informed us that a provision would be needed to cover the exposure in the absence of a government guarantee dblquote , the source said.
rnrnThe state utility has stopped paying the capital element of the repayments, but continues to service the interest payments, the source added.
rnrnThe release of annual financial statements is been held up until the provisioning issue is settled.
rnrnBoC, which is the largest bank in Sri Lanka, has increased its lending portfolio by 36 percent to Rs. 129.8 bn during the first nine months of 2001, with government sector accounting for most of the facilities.
rnrnThe bank defended the increase in state sector lending, pointing out the lack of safe lending opportunities in the private sector due to the decline in the economy.
rnrnDuring the nine months up to September 2001, BoC quote s operating profits after provisioning has plummeted 149 percent to