The second phase of the new Golden Key repayment process initiated by the present government is to be delayed due to lack of funds, officials said. The Treasury is yet to release a sum of Rs.3.94 billion to the Golden Key Credit Card Company to resume the repayment of 41 per cent of the deposits [...]

The Sunday Times Sri Lanka

Second phase of new GK repayment delays due to lack of funds

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The second phase of the new Golden Key repayment process initiated by the present government is to be delayed due to lack of funds, officials said. The Treasury is yet to release a sum of Rs.3.94 billion to the Golden Key Credit Card Company to resume the repayment of 41 per cent of the deposits of GK depositors numbering 2700 who have deposits ranging from Rs. 2 million to Rs. 10 million, Chief Exeutive Officer of the GK Credit Card Company Dinesh Perera disclosed.

The proposal made by Finance Minister Ravi Karunanyake to release an advance of Rs. 3.94 billion from the Treasury to the Central Bank for the repayment of the second phase for depositors holding deposits from Rs. 2 – 10 million and to reimburse the said amount to the General Treasury by liquidation of assets of the GK Company, was approved by the Cabinet of Ministers, a month ago.

The required funds cannot be released during the period of budget preparation and the Treasury has to follow a long procedure in releasing money as the documents relating to financial transaction will have to go through the Central Bank (CB) and the state banks which are not coming under the Finance Ministry, a senior Treasury official said without elaborating the current procedure.

The required funds will have to be transferred from the Treasury account in state banks to the CB which would then issue a cheque to the GK company, he said adding that depositors will have to wait till they get necessary approvals and complete the procedure.A sum of Rs. 544 million was paid to around 2500 depositors with deposits up Rs. 2 million under the first phase of the latest payment plan under the 100 day programme.

Cheques of 1030 depositors holding deposits Rs.2-10 million have been prepared and the company is ready to distribute it after the audit inspection and signing of the cheques, Mr Perera revealed.The depositors were paid under four phases previously during the previous regime. Rs. 791 million was paid to 8,052 depositors under Phase 1, while Rs. 685 million was paid to 7,036 depositors under Phase 2.

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