Traders in North face dilemma as banks stop loans

[TamilNet, Friday, 14 September 2012, 15:55 GMT]
Eezham Tamil business community in the Jaffna peninsula and the Vanni mainland are in a dilemma as all Sri Lankan banks in public and private sectors have suddenly stopped issuing loans and also have increased the rate of interest to loans already issued by four percent. The entire business activity in the districts of Jaffna and Ki'linochchi has come to a grind halt, according to Mr.R.Jayasekaram, the president of the Jaffna Chamber of Commerce.

Several Tamil traders have closed their businesses as they are unable to repay the loans already borrowed from the banks, he told media at the office of a Traders Association held at Maanippaay on Thursday morning.   He added that the sudden termination of issuing loans to businesses is the starting point for the major economic crisis for the entire business community in the peninsula.   “More than one hundred and fifty branches of public and private sector banks are functioning in the peninsula. These bank branches were established after the war under the theme to provide livelihood assistance to people. However, these bank branches have not provided any social welfare facilities or livelihood assistance to the affected, instead they were functioning with the sole purpose of earning profit,” he said.

“Many traders with the loans obtained from these bank branches have already launched their business activities. But, the bank branches phased down the amount of loans issued to the traders six months ago. Now the branches have stopped providing loans completely,” Mr.Jayasekaram said.   Majority of business people have mortgaged their properties to these banks to obtain loans. Now they are left in the lurch to find money to run their businesses, he said.

 

Latest 15 Reports
15.10.19 23:50  
Colombo destroys dairy-farming economy of Eezham Tamils in Batticaloa
14.10.19 23:48   Photo
Tamil parties in North-East stipulate ‘acid test’ terms to SL presidential candidates
13.10.19 22:15   Photo
SL Governor's latest land grab poses danger to archaeological traces of Eezham Tamils
12.10.19 22:23   Photo
Monks step up campaign against Muslims, want to carve out Sinhala colony in Ampaa'rai
11.10.19 22:07   Photo
Vote for Self-Determination, reject major candidates for more effective boycott
10.10.19 23:31   Photo
SL Police intensifies restrictions on Saiva devotees at disputed ‘chaitya’ hilltop in East
09.10.19 20:17  
Indian Coast Guard trespassed into waters off Jaffna, 18 fishers detained since 03 October
08.10.19 18:43  
Divisional Secretary, TNA MPs must act to release Chegnchoalai lands: civil activist
07.10.19 23:12   Photo
Heinous act by HRCSL: former orphans of Chegnchoalai on the brink of losing lands
06.10.19 12:21  
EPDP joins Jaffna protest against desecration of Neeraaviyadi temple
05.10.19 22:06  
Families inheriting lands from parents refused of land registration in Moothoor East
04.10.19 21:50  
SL Archaeology, Police continue to disturb Tamils’ right to worship at Vedukku-naa'ri hilltop
03.10.19 19:16  
Raghavan plans to distribute uncultivatable lands to Tamils to compensate for loss of fertile lands
02.10.19 22:28   Photo
No place for human rights in China’s white paper for future world
01.10.19 18:26  
Genocidal Sri Lanka hits back at UN, claims it passed ‘litmus test’ on human rights in 2019
 
Find this article at:
http://www.tamilnet.com/art.html?catid=13&artid=35566