The Secretariat for Coordinating the Peace Process (SCOPP) is working with representatives of banks, UN agencies and the business community to address the question of access to credit to facilitate the return to  normalcy in  the East after its  liberation fro LTTE control At a meeting convened by SCOPP on July 30, 2007, access to credit, loan recovery and determining  most needy were identified as key impediments to improving livelihood opportunities, especially in agriculture, with the cultivation season about to commence.

Representatives of the chambers of commerce (FCCISL), commercial banks and UN agencies participating in the meeting agreed that a humane approach was needed to alleviate the difficulties of in the East affected by both the tsunami and the conflict. In the East, around half the debtors failing to repay, compared for example with Jaffna and Vavuniya where the recovery rate is over 90%.  This has made commercial banks wary of offering credit facilities and other financial products, banking representatives told SCOPP.

The Bank of Ceylon, for example, will be conducting a programme in Batticaloa and Ampara from August 4-5, 2007 to sensitize managers to the human side of granting loans. Mohamad Hanifa, ILO Consultant, explained that such initiatives are as important as cash grants. He said that a 'Livelihood Coordinator' would be appointed by the ILO to act as the intermediary between the banks and loan-recipients.

Another problem has been screening applicants. Sam Stembo, of the FCCISL said, 'there is a problem about determining the criteria for selecting people to grant loans. We have highlighted this at meetings with the ILO.' This view was echoed by Tom Hockley (UNRCO): 'the issue does not relate to a shortage of money, but is one of how one accesses the fund'.

Timing is another issue. For example, since the planting season begins in September, the demand for credit becomes high. It is crucial that the right people get the right amounts and the right time, it was pointed out.