Several state institutions received treasury guarantees for substantial amounts of credit according to the Pre-Election Budgetary Position Report 2010 released by the Treasury Department this week. The Ceylon Petroleum Corporation (CPC), the Ceylon Electricity Board (CEB), Mihin Lanka and the STC General Trading Company are some of the institutions that were guaranteed credit in 2009.
Last year, the CPC was guaranteed over Rs.5 billion from People’s Bank for the Muthurajawela SPBM Off Shore Fuel Oil Pipe Line Project and received another loan of Rs.25 billion from the Bank of Ceylon (BOC).
Earlier in 2008, the CPC had received another loan of Rs.80 billion from the BOC. The CEB was given a short term loan facility of Rs.8 billion from People’s Bank in September 2009 while budget airline Mihin Lanka (Pvt) Ltd received Rs.1.55 billion from the BOC in November 2009.
Several loans on a short term basis were given in January 2009 to registered tea factory owners as part of the relief package for the tea sector. Of the nine loans, there was a Rs.376 million loan from the BOC and a Rs.111.2 million loan from People’s Bank. The STC General Trading Company was given a loan of Rs.440 million by People’s Bank in November 2009 for the purpose of introducing a consumer goods budget pack.