JVP expose` : IMF pushes government to privatize state banks

COLOMBO (News 1st): Allowing foreign nations to take control of the natural resources in our country was a topic that has been widely discussed during recent months. The JVP today (June 23) made another revelation regarding this. JVP MP Bimal Ratnayake while showing a document said that it was the Peoples Bank amendment bill which was put forward by the government to the parliament to sell and privatise the Peoples Bank. He continued to say that it is a condition set by the IMF to sell the Peoples Bank and the BOC and that this government is carrying out their selling by deceiving the public. Further explaining the matter he said that as per the 1981 Peoples Bank act that when major financial decisions are reached in addition to the head of the bank, in addition to the approval of the board of directors of the bank, and in addition to the approval of the minister, it has been made compulsory to receive the approval of the monetary board and they should obtain consensus from the monetary board. MP Ratnayake also said that however as per the draft bill that the clause requiring the approval of the monetary board has been taken off and that only the Minister and the Chairman appointed by the Minister could do this. He further said that the Minister has also taken over the power of issuing shares and that the government hopes to issue the shares of the bank before the next budget. The parliamentarian further clarified that the issues that would arise as a result of this problem would be that the economy would go down further from its prevailing situation and that the government will lose its control over the economy while the job security of employees becomes another major concern. Responding to an inquiry made by a journalist on the repeated requests made by the IMF to privatize the state banks, the MP replied that the IMF is an institution that works with the powerful nations of the world such as the US, European countries, France, German and England and that it functions based on the economic wants of these nations. He further said that when the state institutions are crippled like in our country that these international institutions have an opening and that since we take their loans they consider our natural resources to be of very cheap value. Ratnayake added that since the US, Germany and England cannot pressure Sri Lanka that they have created an organization as the IMF that has the capability to do so. Also commenting on the Yen one billion offered to Sri Lanka by Japan for the development of the Trinco Harbour, he said that since everything is not done without a cause that the fact that Japan offered such money which is well above a billion is also done with a cause.