Senior citizens hardest hit

The Government’s decision to lower interest rates of deposits was mainly to encourage banks to lend at lower interest rates for entrepreneurs to boost the economy of the country which is in dire straits.

However this has left senior citizens and pensioners high and dry. Their lives have been made miserable with the escalating cost of living, skyrocketing cost of medical expenses etc. Monthly interest rates on fixed deposits which they mostly rely on have been reduced to as low 4% and 5 %.

The only redress is by the Central Bank’s special scheme of 15% interest for senior citizens but this has a Rs 1.5 million ceiling.

In comparison to the reduction of interest rates of deposits, if one takes into account the number of loans granted to entrepreneurs at lower interest rates, the answer would be negligible. Banks of course would show enhanced profits at the end of the year as they have paid the depositors lower interest rates.

The President’s intervention is needed to grant redress to ‘distressed” senior citizens. Sunil Thenabadu Brisbane