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MPs getting soft loans for super vehicles

By Ajantha Kumara Agalakada

Members of Parliament are to be given low-interest state bank loans to buy duty free vehicles, a minister said.

The vehicle’s entire value not exceeding Rs. 3.5 million will be given as a loan at seven percent interest to be re paid in four years.

Parliamentary Affairs Minister Vishwa Warnapala told The Sunday Times a cabinet paper to this effect was approved at Wednesday’s cabinet meeting
Under the loan agreement, the vehicle would have to be mortgaged to the bank and in the event of default; the MP would lose ownership of the vehicle.

The loans would be granted only from the bank branch in Parliament so that the recovery process could be streamlined, he said.

The agreement also laid down that repayment should be in monthly instalments of Rs. 85,000 if the full loan was taken but discussions were under way with the Treasury to reduce the monthly instalment, the minister said.

The duty free vehicle permits were issued to MPs last year, but many of the members had not made use of the permit due to financial problems, he added.

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