By Yohan Perera and Ajith Siriwardana
The People’s Bank Amendment Bill which provides for the bank to issue debentures and maintain an authorized share capital was presented to Parliament yesterday.
The Bill will include provisions for the Bank to raise money through debentures for granting medium term and long term loans.
As per the proposed Bill, the authorized capital of the bank shall be Rs. 50 billion which will be divided into one billion fifty rupee shares.
As per the Bill, the Finance Minister may in the interest of the national economy where he deems necessary, determine from time-to-time the paid up capital of the bank by an order published in the gazette. The minister is bound to bring every order he makes with regard to the bank before Parliament for approval.