Attempts being made to write off loans of VIPs under guise of domestic debt restructuring - Prof. Charitha Herath

• Says writing off non-performing loans owed by VIPs will lead to a concerning situation
• Reveals many debtors are former Ministers, MPs and other VIPs 
• Demands Govt. launch a plan to recollect debts owed

Freedom People’s Congress member Prof Charitha Herath

Freedom People’s Congress member Prof Charitha Herath yesterday said any attempt to write off non-performing loans owed to state banks by various VIPs will lead to a highly concerning situation. 

“Some of the debtors are former Ministers and MPs,” he revealed. The MP also noted that certain individuals whose debts were written off on previous occasions continue to engage in various other business activities to date. 

Herath said a program must be initiated immediately to collect the debts owed to state banks by such individuals. He also accused certain persons of attempting to write off these debts amidst the attempts to restructure domestic debt.  “This is wrong. Debt restructuring is one thing. But there is a significant stock of debt that remains unpaid. The Government must take a decision about these,” he said. The MP noted that sit was imperative to collect these loan payments. 

“The Government must be mindful. Former politicians who owe these debts are attempting to evade repayment through the debt restructuring efforts,” he added. 

He demanded the government not allow any VIP who owes significant sums to banks to evade their responsibility in repaying them.