Wednesday Dec 11, 2024
Wednesday Dec 11, 2024
Wednesday, 11 December 2024 00:35 - - {{hitsCtrl.values.hits}}
Ceylon Federation of MSMEs and the National Trade Protection Council yesterday extended their commendation to President Anura Kumara Dissanayake and the Government for the extension of the freeze of parate execution on defaulted loans.
They said Parate Act, has been a serious challenge for entrepreneurs.
“We deeply appreciate the support and commitment shown by these leaders in addressing the concerns of small and medium businesses,” they said in a statement.
The also requested the Government to take the following actions as part of future measures:
1. Amend the Parate Act to make it more applicable to the current situation.
2. Provide an opportunity for loan restructuring under lower interest rates to facilitate repayment.
3. Address the issues of non-performing loans (NPLs) faced by entrepreneurs and business owners who have been affected by the COVID-19 pandemic and the Easter attacks.
4. Establish a loan restructuring process in collaboration with the Central Bank and the Ministry of Finance to return properties and businesses that were seized by banks through auctions from 2019 to 2024, allowing businesses to repay loans under favourable terms.
5. Provide an opportunity for loan restructuring under lower interest rates, excluding all interest charges, so that entrepreneurs can repay their loans more easily from 2019 to 2024.
6. Form a committee comprising registered sector associations of micro, small, and medium enterprises, along with representatives from the Central Bank, the Ministry of Industry, and all banks, to discuss the issues faced by local micro, small, and medium enterprises.
7. Discuss and resolve issues related to tax payments and tax arrears for local micro, small, and medium enterprises, including removing penalties and providing opportunities to pay outstanding taxes and EPF/ETF contributions.
“Our forum requests that during the extended period of the Parate Act, the Government address these issues and provide the necessary support for micro, small, and medium enterprises to recover and grow,” they added.
