A bailout package for finance companies has been submitted to the Cabinet for approval, informed sources said. Even though details of the package have not been disclosed, the sources said one of the things the government might be looking at is an outright grant and taking over of assets held by struggling finance companies. "They might advise state banks to take over the assets and there will be a transfer of ownership," a source said.
Certain companies are heavily into real estate and may get around 60% of the market value. Similarly, leasing companies might also get a certain percentage of the market value on repossessed vehicles. Sources also said that leasing companies have been advised to lower interest rates. With treasury bill rates also declining, it could help companies to offer leasing at lower rates.
Chairman of the Finance Houses Association Shirley Perera said he did not know the specifics of the bailout package but said the companies are eagerly awaiting the details. |
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