Cabinet decides to write off loans obtained by women in 12 drought affected districts

COLOMBO (News 1st) - The Cabinet of Ministers, on the recommendation of the Minister of Finance and Mass Media Mangala Samaraweera has decided to write off non-consumption loans granted up to Rs. 100,000 to women by all registered Finance companies. Further, the government has also decided to introduce an interest rate cap of 30% per annum on all future loans given by Micro Finance Companies. According to the Finance Ministry, this scheme of relief initially will be limited to women who have obtained micro finance loans for non-consumption purposes in 12 drought-affected districts. The twelve districts that were affected by the recent drought are Trincomalee, Ampara, Batticaloa, Jaffna, Mullaitivu, Kilinochchi, Vavuniya, Mannar, Kurunegala, Puttalam, Anuradhapura and Polonnaruwa where cultivations were affected consecutively for five seasons. Accordingly, the Minister of Finance and Mass Media Mangala Samaraweera said that women who obtained such loan amounting to Rs. 100,000 and below can apply for complete write off of the interest and the capital payment.