MANSEHRA, March 29: On the directives of the Earthquake Rehabilitation and Reconstruction Authority (Erra), the USAID has withheld interest-free loans from more than 1,300 traders of Balakot until they agree to shift to Bakryal, the site of a proposed town, it is learnt.

The USAID authorities in their quake-rehabilitation programme, after completing a survey report, had approved interest-free loans for quake-affected traders of Balakot on January 24, 2007.

The loans were due to be disbursed at the end of March or early April but the USAID sent letters to the traders, saying that the loan disbursement had been put off on the directives of Erra.

The loans would now be given only to those who shifted to Bakryal. The traders after receiving the letters said they would resist the Erra’s “unjustified act”.

Speaking at a press conference, the president of the All Traders Association, Balakot, Mohammad Asif Khan, and its general-secretary, Mohammad Arif, said that all trade centres and shops had been completely gutted in the earthquake and Erra despite helping the completely shattered traders’ community of Balakot had surprisingly issued the directives to the USAID not to help the traders regarding the interest-free loans.

They said the process of establishing the new town would take years and they would have to face trouble without getting the financial assistance and the interest-free loans.

They claimed that they would move the Supreme Court if Erra did not ask USAID to give much-needed the loans to the traders of Balakot.