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CPC seeks treasury guarantee for Rs.100billion loan

25 December 2011 10:46 pm - 13     - {{hitsCtrl.values.hits}}

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The Ceylon Petroleum Corporation (CPC) is preparing to obtain a loan of Rs.100 billion ($ 10 billion) from the state owned banking giant, People’s Bank.
 
In this connection the Petroleum Industries Minister Susil Premajayantha has sought cabinet approval for the issue of a treasury guarantee of $10 billion to the People’s Bank.
 
As the Minister has shown the cabinet the CPC at present gets most of its Letter of Credit facilities for import of petroleum from the Bank of Ceylon (BOC). But the conditions stipulated by the BOC are comparatively more stringent than those of the People’s Bank
 
He has further stated that the People’s Bank is willing to increase the present credit limit of $ 1.8 billion to $10 billion on a treasury guarantee for $ 10.billion.  
 
As the CPC has now exceeded the loan limit allowed by the BOC it has become essential for the Corporation to get the treasury guarantee of $10 for the loan anticipated from the People’s Bank.
 
The Minister also states that the CPC has at present a liability of $7.59 Billion of which $6.03 billion for the BOC while   the balance $1.56 billion is for the People’s Bank. (Ajantha Kumara Agalakada)
 

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  Comments - 13

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  • kenny_fdo Monday, 26 December 2011 01:59 AM

    To import more low quality petrol?

    jack Monday, 26 December 2011 02:22 AM

    may be some corruption

    Pet-Roll Monday, 26 December 2011 02:35 AM

    With so many liabilities, are there any assets for PB to consider an additional US $ 8.2 b. credit?. Is it HARRY, MARRY OR JERRY?. Is PB planning a friendly acquisition of CPC like BOC getting into unknown businesses?.

    GSK Monday, 26 December 2011 03:12 AM

    Hope this wont be a another blunder like the Hedging Deal??

    The God Father Monday, 26 December 2011 03:38 AM

    OMG, i wanna take back my little savings from the Peoples bank.

    AK Monday, 26 December 2011 03:45 AM

    Rs 100 billion = $ 1 billion apox. There is a typo. Nevertheless, CPC is at a hell in all aspects. Petroleum is a profitable business in most of the countries. But here, they absorbed Money of poor tax payees.

    Shanaka Monday, 26 December 2011 04:06 AM

    Just a tip to increase fuel.

    Nodrog Monday, 26 December 2011 05:18 AM

    In spite of the monopoly CPC still cannot run at a profit. Just shows how inefficiently its being run. Privatize it!!

    Hiraz Monday, 26 December 2011 06:42 AM

    Nodrog your correct. Let it be privatized..

    Calistus Jayatilleke Monday, 26 December 2011 07:09 AM

    It is always the Treasury - aka public - paying for corporations run inefficiently by politically appointed stooges.

    Dalu Banda Monday, 26 December 2011 07:21 AM

    Should I withdraw my saving from BOC???

    Aristotle Monday, 26 December 2011 07:36 AM

    The result of unqualified running the organization.

    ADAHAN Monday, 26 December 2011 07:58 AM

    The country is treading on the path of instability but our minister will continue to remain stable.


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