There is a great danger of cutting off an amount close to Rs. 700 billion from the Employees’ Provident Fund in the first round due to the strict orders given by the IMF to restructure the domestic debt.
Domestic credit has been concentrated in commercial banks and the EPF. It has been revealed that the government will focus primarily on cutting off the debt of the EPF without restructuring the loans given to the government by banks and other financial institutions in the first round of debt restructuring.
The government has borrowed around Rs 3.4 trillion from the EPF through treasury bills and bonds. It is estimated that if 20% is cut, at least Rs. 700 billion will be lost to the working people of this country.
