24 July 2024 01:17 am Views - 1252
As arrears in gold pawn advances hit a record Rs.571 billion amidst the economic crisis, the government has decided to provide interest relief for borrowers in hard-hit low-income communities.
The Government Information Department noted that the arrears of pawn advances expanded by a staggering 172 percent from Rs.210 billion in 2019 to Rs.571 billion in March this year, driven by the economic crisis.
“The immense economic crisis experienced within the country over the past years has negatively affected every sector in the economy, both directly and indirectly. As a result of the crisis, the pawning of gold jewellery accelerated,” the Department said.
Accordingly, President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Rehabilitation, and National Policies, sought the approval of the Cabinet of Ministers to roll out interest relief subject to a maximum annual interest rate of 10 percent for pawn advances that do not exceed Rs.100,000 obtained from licensed banks on or before 30th June 2024 on an individual basis.
The programme is to be implemented by the General Treasury. The Government Information Department noted that the licensed banks have also recognised the necessity of granting relief to the low-income community who has obtained pawn advances from them.