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Farmer cultivation loans written off

President Chandrika Bandaranaike Kumaratunga who is also the Finance Minister yesterday directed Ministry Secretary to write off all farmer loans upto Rs.20,000 granted in 1999, 2000 and the Yala season this year.

In a circular to all bank chiefs including Governor of the Central Bank, Chairmen of Bank of Ceylon, People's Bank, all Regional Development Banks and the Commissioner of Cooperative Development, Finance Ministry Secretary Dr. P. B. Jayasundera has informed the bank heads to suspend collection of repayment on such loans.

Dr. Jayasundera has also advised the bank heads to inform this decision to all respective beneficiaries through their regional and branch managers.

The Government has designated the Director of the Rural Credit Department of the Central Bank to implement, monitor and coordinate this program.

This action is in conformity with the Memorandum of Understanding (MoU) reached between the Government and the JVP on September 5, 2001, the clause 9 of which stated: In the same manner as after the 1994 General Elections, her Excellency the President wrote-off cultivation loans amounting to Rs.6000 million given to farmers and repayment of which had gone into arrears, the People's Alliance Government will take action before 30.09.2001 to write-off loans given to farmers from the Maha season of 1999/2000 to Yala season of 2001 at rates ranging upto Rs.20,000 to each (inclusive of the full amount of Rs.20,000) for paddy and plantain cultivation.

Thus, the Government has honoured yet another pledge given to the people.

Information and Publicity Unit of the SLFP, in a press release issued by its Media Spokesman Deputy Minister Mangala Samaraweera yesterday said the decision of the President to write off cultivation loans is a great relief to farmers.

It also recalls how the PA Government wrote off Rs. 6,000 million worth cultivation loans in 1994 immediately after assuming power.

That was a time farmers were committing suicide as they were unable to repay cultivation loans, the press release said.

It also explains how the President as Finance Minister maintained stable fertilizer prices despite their escalation in the world market.

Outlining the benefits given to farmers during the seven years of the PA Government the release mentioned among others, the introduction of a new Farmer Insurance Scheme and a better agricultural insurance scheme, the revival of agricultural extension services that were paralysed during the UNP regime, provision of plant nurseries, vegetable storage centres, refrigerator units and processing centres and a day-night market facilities at the Dambulla Economic Centre as achievements of the PA Government.

The inclusion of a proposal to write off cultivation loans shows the sensitivity of both the PA and the JVP to the problems of pleasantry, the release noted.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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