The Government has decided on legal steps to recover an overdue debt of over 10 billion rupees from nine local business concerns to Public Sector Banks, Minister for State Bank Development Wijedasa Rajapakse P.C., said on Wednesday (30).
He said at a press conference at the Ministry of Finance and Planning that the massive loans had been given without normal collateral. Some corrupt bank officials alleged to be responsible for arranging these irregular loans will also be brought before the Law, Rajapakse said.
He emphasized that legal steps will be taken to recover every possible cent from these errant businessmen. If necessary new legal provision to recover the debt would be provided with the least delay. A full inquiry will be made to establish extent of involvement of officials in questionable transactions as a high priority task of the government.