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By Chamitha Kuruppu

Financial assistance to the value of Rs.250 million has been set aside by the People's Bank to provide immediate relief to flood victims. Chairman of the People's Bank Lal Nanayakkara told the media in Colombo yesterday that the corporate management of the bank has designed concessionary credit facilities for thousands of flood and earthslip victims.

The Disaster Management Program is categorised under three phases namely short term, middle term and long term and nearly 100,000 customers affected by floods will be provided with financial assistance under this program.

Under short-term measures the bank is providing fresh water, dry rations and clothes to flood and earthslip victims in Ratnapura, Kalutara, Galle, Matara and Hambantota districts.

Middle-term measures are to provide loan facilities under concessionary rates for those whose houses have been destroyed and for those whose income have been severely affected. The bank has already reduced pawning rates to nine percent per annum. " People want to get hard cash into their hands in this time of need and pawning is the only way to do so," Nanayakkara said.

The bank will provide loan facilities for housing, agriculture, industries, trading and consumption for immediate rehabilitation. A maximum of Rs. 50,000 per unit will be provided for house repairs at the rate of 10.5 per annum which is repayable in five years with a grace period of six months.

Rs. 500,000 will be provided for reconstruction of houses at the rate of 10.5 per annum which is repayable in 10 years with a grace period of six months.

A maximum of Rs. 250,000 will be provided by the People's Bank for rehabilitation of agriculture and plantation sectors at the rate of 11%. The loan is repayable in three years with a grace period of six months. For industrial purposes the bank will provide Rs. 250,000, at the rate of 12.5. A maximum of Rs. one million will be provided for trading at the rate of 12%.

For existing borrowers the bank will provide special facilities. Auction of pawning articles and properties will be suspended for three months and all legal action will be suspended for three months. Meanwhile, a three-month moratorium capital and interest will also be provided.

The bank has made arrangements to renovate five school buildings destroyed by the floods in the five districts worst affected. This will be implemented under the bank's long term measures.

Nanayakkara thanked the bank staff in flood affected areas for providing a human service amidst difficulties. " Of the 30 branches except three all the others were in operation from May 19, with whatever facility available," he said.

Asked whether the bank has estimated the total damage caused by bad weather General Manager Asoka de Silva said they were more concerned about their customers than assessing the damage.

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