The use of a credit line was an effective implementation modality. Significant advantages from longer loan periods, grace periods, and fixed interest rates during a period of high and rising interest rates and markedly lower capital availability supplied a definite demand. The use of fixed interest rates during the current period of declining interest rates has, however, increased the requests for early repayment. THe Development Finance Corporation of Ceylon (DFCC), the Ministry of Finance, and Ministry of Plantation Industries (MPI) should consider the option of interest rate adjustment to outstanding loans. Similarly, the apex body agreement did not adequately cover for the recycling of early repayments, and, as such, interest earned and loan repayments can be retained by the apex body. Participating financial institutions (PFIs) are required to pass early repayments back to the apex body.
Plantation Development Project