Special BoC credit scheme for EP agri sector

Lumbini EDIRISINGHE

Bank of Ceylon (BoC) will extend special credit facilities for entrepreneurs in the Eastern province General Manager of BoC, B.A.C. Fernando said.

The interest for credit has been reduced with the Government deciding to pay part of the interest as a subsidy to the borrower.

“We have identified seven areas which include agriculture, fisheries, livestock to provide credit on a priority basis,” he said.

Speaking to Daily News Business Fernando also said they are promoting the concept of providing credit to ‘groups’ of entrepreneurs where they could maintain a better check and balance system. “We have already opened two branches and are planning to open seven more soon,” he said.

With credit being extended to from micro level we expect that over 500 employment opportunities would be created under the livestock development programme while a further 1000 would be created among farmers under the Krushi Navodaya programme.

“Our main purpose is to develop farmers with the savings habits. We are trying to develop the farmer’s skills and train them to save money gradually providing them with facilities”.

Initially farmer’s come to the bank and open savings accounts and later they are converted as current accounts as they progress in business.

Low interest loans are given to paddy farmers who have failed to repay the loans in Ampara earlier. This is done since the bank is now confident that paddy farmers are in a position to repay both the default and new loans as they have forward agreements with buyers since the dawn of peace in the area.

He said that one of the priorities of the bank would be to build faith among the Eastern province people on the banking sector. “For more than two decades they have had limited access to banks and we are educating them on the advantages of banking. The response is very good,” he said.