Microfinance to provide succour to Lankan Tamils

MF Focus, July 15, 2009: Increasingly coming under scrutiny for its relief measures to help resettle more than 300,000 displaced Lankan Tamils, Sri Lanka’s government has sought to provide the microfinance route, which is a more credible and long-lasting solution to tide over the problem.
President Mahinda Rajapaksa launched on Monday a $26 million microfinance loan programme as part of his government’s “Awakening North” package, designed to help agriculture and small businesses in the northern region, said a statement by the Central Bank of Sri Lanka (CBSL).
Under the proposed loan scheme, credit facilities would be available for agriculture and related activities, livestock development projects, fisheries and related activities, micro and small scale enterprises and trade and other self-employment projects. The financial institutions will provide 90% of the project cost, subject to a maximum limit of Rs.200,000 per borrower at 12% rate of interest, to be repaid in five years and extendable by 6 months grace period depending on the nature of the activity.
The financial institutions are eligible to obtain refinance at 6% from the central bank and the banks identified under the scheme are state-run Bank of Ceylon, People’s Bank and Hatton National Bank, Commercial Bank, Seylan Bank and SANASA Development Bank.
To be taken up immediately, the loan scheme will be implemented by the bank’s Regional Development Department, it said.

Related Posts:

• Sri Lankan CB focuses on expansion of Microfinance and livelihoods development in North Province
• NABARD sanctions Rs 307 crore loan for projects in West Bengal
• NABARD invites applications for 2010-11 Internship Program
• PlaNet Finance to provide microfinance support to Sichuan quake victims
• IFC Azerbaijan & Central Asia microfinance project launches website
• Popularize Microinsurance for Financial Inclusion- India’s Finance Minister
• EIB €110 million to boost SMEs and Microfinance in Bosnia
• IFC Azerbaijan & Central Asia Microfinance Transformation Support Project Launches its Website

© 2009, Microfinance News. All rights reserved. 2008-09