The Government has suspended the auctioning of property belonging to Small and Medium-scale entrepreneurs for defaulting on bank loans amounting to not more than Rs.300 million for a period of one year, Co-Cabinet Spokesman Dr. Bandula Gunawardena announced yesterday.
Speaking at a special press briefing at Government Information Department yesterday, Minister Dr. Gunawardena said that these loans will not be written off but the government will give a concession to SME sector entrepreneurs by revising the interest rate on these loans. “We will put in place a mechanism aimed at revising the interest rate on these loans following a discussion with the Central Bank, State, and Private Banks,” Dr. Gunawardena said.
He said over 70 percent of entrepreneurs have defaulted the repayment of loans due to economic constraints and every village will be allocated Rs.20 million to expedite development activities at the village level. Dr. Gunawardena added all these entrepreneurs are disappointed as their properties are on the verge of being auctioned for payment delinquency. “The government cannot write off these loans. We have a responsibility to protect the banks, financial institutions, and the consumers too,” he added.