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Banks have failed the poor, PSM calls on Prime Minister to create easy loans for the poor
Malaysian Socialist Party (PSM) Press Statement - February 10, 2010
This morning around 70 people led by PSM National Chairperson Dr. Nasir Hashim and Deputy Chairperson M. Saraswathy submitted a memorandum to the Prime Minister urging the Government to set up easy loan system to help the lower and middle income group.
Carrying a banner and chanting slogan such as urging Najib to replace to role of Along and ceti. Along and ceti are illegal loan sharks but for the poor, they are the only hope as the banks have failed them. Many lower income and lower middle class families have lost their property such as houses because they cannot repay the loan. Though the Central Bank bank have called for loan restructuring but it has failed to resolve the problems as Banks continue to put ridiculous conditions to the borrowers.
The Police at one point tried to dismantle the banner but was prevented by the boisterous protesters. Those who came continued to shout slogans and give speeches. Later a meeting was arranged by the PM's office to receive the memorandum.
Ravin Ponniah, the Special Officer to the Prime Minister then held a dialogue at his office where he was briefed on what the Government should do and was reminded of Najib's "Peoples first" concept. The Officer took notes and agreed to work on the issue which he saw as critical.
Talking to the press later, PSM Secretary General S.Arutchelvan said that this is the third level of action as prior to this, PSM had held talks with the Human Resource Minister as well as had a dialogue with the Central Bank. Today we have come to the Prime Minister's office because it is very urgent for the Government to set up easy loans for the poor with very minimal interest. PSM propose an interest rate of 4% or below annually. Currently Ceti and along ask 10% monthly interest. There have also been cases of suicide as people cannot handle these loan sharks.
While the Government and the police cannot handle the along (loan sharks), yet the bigger problem is the failure of the banks to provide easy loans for the poor.
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