STO halts providing credit facilities

The State Trading Organisation (STO) has stopped providing credit facilities to companies.

Managing Director of STO, Shahid Ali told Sun Online that credit facilities were halted because money has not been received for several credit facilities issued in the past.

“We discussed with Finance Ministry before making this decision. We stopped providing new credit facilities, because it affects the company’s cash flow adversely,” he said.

He said that MVR700 million remain as receivables from credit facilities, and that most money is owed from government companies.

Over MVR350 million is owed to STO for fuel by Utilities Companies.