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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