NECORD strengthens northeast rural banking system

[TamilNet, Tuesday, 20 April 2004, 02:24 GMT]
The Asian Development Bank (ADB) funded North East Community Restoration Development (NECORD) Project Director Mr.T.Lankaneson Monday signed agreements with the Presidents of nine district multi purpose co-operative societies to strengthen the co-operative rural banking system in the NorthEast. NECORD officials hope to revive the rural economy of the war torn province, sources said.

NECORD Project Director Mr.Lankaneson speaking ( L-R) Provincial Co-operative Commissioner Mr.Ilankovan, NEPC Chief Secretary Mr.Rangaraja are seated

The signing event took place at the auditorium of the Provincial Ministry of Health in Trincomalee Monday with the Provincial Chief Secretary Mr.S.Rangaraja as the guest of honour.

Presidents of Kayts MPCS in Jaffna district, Karaichchi North MPCS in Killinochchi district, Karaithuraipattu MPCS in Mullaitivu district, Vavuniya North MPCS in Vavuniya district, Mannar MPCS in Mannar district, Trincomalee MPCS in Trincomalee district, Eravur Northwest MPCS in Batticaloa district, Addalichchenai MPCS in Kalmunai district and Amparai MPCS in Amparai district signed the agreement.

North East province is divided into nine Assistant Commissioner of Co-operative Development (ACCD) divisions and all the nine ACCDs were present at the Monday event.

Mr.Lankaneson said the NECORD has distributed more than 1700 million rupees to the rehabilitation and resettlement projects in the northeast in the past and he did not know how much money from this had gone through the co-operative rural banks. His aim was to direct all funds for the rehabilitation and reconstruction through the co-operative rural banking system to revive the rural economy. Hence the project of strengthening the co-operative rural banks in the province has been launched, Mr.Lankaneson said.

Mr.Lankaneson further said the NECORD is prepared to bear the expenses of a training course for co-operative employees. Further assistance from NECORD to the development of the co-operative sector in the northeast solely depends on the success of the first phase of strengthening the co-operative rural banking system, he said.

One MPCS President signs the agreement while Mr.Lankaneson and Mr.Rangaraja look on . Standing behind is Mr. Ilankovan

Under this project about 10.4 million rupees would be distributed to 99 co-operative rural banks in the northeast province through the nine co-operative societies. Counter tables, iron safes, cabinets, chares, tables, racks and scales would be supplied to these rural banks in the nine ACCD divisions.

The breakdown of the 99 rural banks follows district wise: - Jaffna-30, Killinochchi-06, Mullaitivu-06, Vavuniya-01, Mannar-07, Batticaloa-16, Kalmunai-12, Ampara-10, Trincomalee-11.

Provincial Commissioner of Co-operative Development Mr.E.Ilankovan said in his welcome speech that it was a red letter day in the annals of the co-operative movement in the province as the NECORD has come to the rescue of the co-operative rural banking system as the co-operatives do not have adequate fund to replaces the losses incurred due to the conflict.

Provincial Chief Secretary Mr.Rangaraja in his keynote address described the local government administration and the co-operative sector as two sleeping giants. "If we make these two giants to work, the war torn province could witness a speedy development in all spheres," said Mr.Rangarajah.

He added, "Our sole aim is to revive the rural economy through rural banks. We would face serious set back if we failed to build up the rural economy of the province."

The co-operative rural bank system (CRBB) was launched in 1961 in all the MPCSs in all districts in the northeast province in order to mobilize rural capital to help the community providing financial assistance for their economic venture.



Presidents of nine co-operative societies in the nine ACCD divisions in the northeast are seen



It is estimated that 7.3 million worth of assets of the rural banks of the co-operative societies were damaged and destroyed during the period of conflict. Jaffna district rural banks suffered a loss of 1.8 million rupees, Killinochchi 1.2 million rupees, Mullaitivu 1.1 million rupees, Vavuniya 2million, Mannar 5 million, Batticaloa 8 million, Kalmunai 6 million, Ampara 7 million and Trincomalee 4 million. The MPCSs within which the rural banks are attached are also not in a position to replace the furniture and equipments as the MPCSs too have lost their valuable assets in the two-decade-old war, co-operative sources said.