UNP exposes bad borrowing by Government

Saturday, 12 October 2013 00:00 -     - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama – Our Lobby Correspondent Loan of US$147 million (Yuan 960 million) obtained from EXIM Bank China for Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP) for 6.3% interest has exceeded 1.3% agreed interest rate between the two countries, Dr. Harsha de Silva (MP – United National Party) exposed on Thursday at Parliament. At the time of borrowing, the applicable LIBOR rate stood at 0.3% - 0.4% while the margin rate was established at 0.9%. “The ideal rate should have been 1.3%. But why did the Government borrow at 6.3% high rate,” questioned to Dr. de Silva during the Questions for Oral answers. In response, Minister of Ports and Highways Rohitha Abeygunawardana stated that the negotiations for the particular borrowing was conducted by the Ministry of Finance, which he has “no knowledge”.