The people in Kayah State find it difficult to repay their loans, as they suffer from a lack of income during the anti-coup protest period.
People want private loan businesses to temporarily suspend the repayment of loans as CDM staff have lost their salaries and the public faces many economic problems with the disruption of most business operations.
A CDM staff said: “I have taken out loans. I am in trouble as loan businesses have not suspended loan repayments. I have no money to buy rice. We don’t even get a salary.”
Staff from the private loan company said: “We have to operate our business with the use of money repaid as banks have closed. We have to sign new contracts with those who are unable to repay their loans. Under the new contracts, they will only have to pay the interest alone. The interest rate per month is just in the thousands. They can’t afford to repay the original loan plus interest. It is impossible to totally stop business operations at such a difficult time.”
Some private loan companies which are granting loans for the promotion of grass-roots activities in Kayah State have only collected interest.
