Sept 11, Colombo: The Ministry of Energy has decided to immediately obtain a loan of US $ 2.5 billion from the international market to address the serious financial crisis faced by the Ceylon Petroleum Corporation.
Cabinet approval has been granted to obtain the loan from the US-based financial institution ‘Concept Global’, Lankadeepa reported.
A spokesman for the Ministry of Energy has said that the loan will be obtained soon at an annual interest rate of 3 percent. The loan has a grace period of 2 years and the repayment period is 12 years.
Udaya Gammanpila, Minister of Energy has informed the Cabinet that the debt to be paid by the Ceylon Petroleum Corporation to the Bank of Ceylon and the People’s Bank is around US $ 3.3 billion.
It is reported that in the face of the financial crisis faced by the Corporation, it has not been possible to settle the outstanding letters of credit of the two state banks.