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Loan waiver will be history, declares Sinha

Union Finance Minister Yashwant Sinha has said the Centre was against the practice of writing off loans.

Addressing a symposium on rural industrialisation in Bihar, Sinha said the loanees should forget the past and prepare themselves for repayment. People should not treat bank finance as free.

Citing the example of east Asian countries and Brazil, he said the first sign of economic crisis had appeared in the form of burgeoning non-performing assets with banks.

He said the Union government was trying to increase the flow of micro-credits, and the National Bank for Rural Development had been directed to work out the process.

In the face of decreasing job opportunities in the organised sector, the government was focussing on creating employment in the organised sector.

Sinha said economic reforms had led to growth but without creation of jobs.

He said India required employment oriented growth and with this in view, effort was underway to boost rural industrialisation.

Employment generation in organised sector was limited but possibilities were limitless in the unorganised sector, he added.

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