Parliament approves $29 million loan as budget support

The parliament has approved the government’s request for a loan of $29 million as budget support from Bank of Ceylon.

This motion was submitted to the parliament by the government of former President Mohamed Waheed on 13 September 2013.

Former President Waheed stated in the letter sent in this regard to the parliament that the government had decided to take a loan of $29.4 million from Bank of Ceylon.

Presenting the report on this issue to the parliament today, Chairperson of Public Accounts Committee Abdulla Jabir said that the committee had agreed to approve the loan from Bank of Ceylon, which has a repayment period of six years.

The loan carries an interest rate of 8 percent and has a grace period of one year. The monthly repayment amount is $490,000.

The parliament said earlier when it passed the budget for 2013, that the government should not take any loan that carries an interest rate of more than 7 percent. The report noted that the loan for budget support carries an interest rate of 8 percent, and highlighted the importance of obtaining loans with lower interest rates.