People's Bank slashes rates

In accordance with President Mahinda Rajapakse's advice at a press conference held at Temple Trees yesterday to all State bank heads to reduce interest rates on loans to between 8 percent and 12 percent, CEO/General Manager of People's Bank P.V. Pathirana, announced yesterday that the bank will reduce their interest rates with immediate effect.

Through this scheme, loans for the sectors of Agriculture, Development Projects, Micro Finance, Retail and Trade, Fisheries, Construction, Co-operatives, Property Development, Housing, Tourism and Hotels will see a reduction in interest rates from its current 19 percent to between 12 percent and 14 percent.

People's Bank has notified all relevant departments to take the necessary steps to release the approved home loans of State Employees before November 30.

Interest rates on loans to the sectors of imports and exports have also been reduced to 11 percent and 12 percent respectively.

Gold Pawning interest rates have been reduced to between 17.5 percent and 14 percent, whilst the value of loans for 22 carat and 24 carat gold have been increased to Rs. 22,000 and Rs. 24,000 respectively.

By reducing the interest rates for loans in all these sectors, People's Bank has given great relief to over 5 million of their loyal customers. Through this initiative, the bank aims to make its fullest contribution towards the government's plan for economic development of the country, while also strengthening and enhancing the standard of living of the public through the provision of such financial support.