'Banks responsible for evaluating repaying capacity of politicos'

Sandasen Marasinghe

President Mahinda Rajapaksa stated that it was the responsibility of the banks to evaluate the repaying capacity of ministers or political leaders, when they apply for massive loans as it would affect the stability of the bank and the economy if they default.

He made this observation yesterday at a ceremony held to hand over appointment letters to 300 new management graduands to the Bank of Ceylon that was held at Temple Trees.

He also said that there were many such incidents where ministers and political leaders had obtained billions of money as loans from banks and neglected to pay them back, adding that despite defaulting, those politicians had gone further by filing cases before courts seeking more relief. President Rajapaksa further said that the government banks have been transformed into profit making institutions now, but there were conspiracies to make such banks unprofitable and privatize them.

He said that under this government, all have changed and while most of the banks had collapsed in developed countries in the face of global economic crisis, our banks remained stable.

The President also stated that only one private bank was on the verge of collapse and the government had taken over the management and made it stable, adding that it was the manner how this government stabilized the banks in the country, that matted.

He also stated that the banks had a great responsibility to shoulder the development of this country by granting more relief to loan applicants in the wake of the elimination of terrorism.

He said that the banks should go forward to support and strengthen loan recipients when they face bankruptcy without blacklisting them.

Agriculture Minister Mahinda Yapa Abeywardena and Finance and Planning Deputy Minister Geethanjana Gunawardena also participated in the ceremony.