Report on approval for $29 million loan as budget support sent to parliament

The Public Accounts Committee has passed to approve the government obtaining a loan of $29 million as budget support for this year, and sent its report in this regard to the parliament.

The issue of obtaining a loan as budget support was submitted to the parliament on 13 September 2013 by former President Dr Mohamed Waheed.

The letter sent by the former president to the parliament stated that the government had decided to obtain a loan of $29.4 million from Bank of Ceylon.

The Public Accounts Committee stated in the report sent to the parliament that it approves the loan, 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 passed 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.