MUZAFFARABAD, June 21: The Azad Kashmir government on Tuesday announced a relief package for cooperative societies registered with the AJK Cooperative Bank (AJKCB) to enable them to reimburse their loans without mark-up. AJK Minister for Transport, Prisons and Cooperatives Sardar Tahir Anwar Khan said at a news conference that the bank had loaned Rs194.467 million to 3,138 societies by 2002 and mark-up to the tune of Rs158.947 million on the amount had accumulated.

Under the package, the societies would be given an opportunity to return only the principal amount in one year, he said.

The minister said most of the societies, particularly those based along the Line of Control, had defaulted mainly due to unrelenting Indian shelling and extreme weathers. He said the areas had been declared calamity hit but no relief was provided to them.

He said the AJK cooperatives department had worked out similar packages for the societies on a number of occasions in the past “but indifference at the government level impeded their implementation”.

The minister said the societies would have to deposit 25 per cent of the principal amount by Sept 30 and the remaining during the following year in monthly instalments.

He said the societies which failed to deposit 25 per cent of their loan by Sept 30 or two consecutive monthly instalments would have to pay the mark-up according to the terms of their agreements.

He said the cooperatives department had taken the step without putting any burden on the government.

Replying to a question, he said loaning by the AJKCB was stopped in 2002 after the dissolution of the Federal Cooperative Bank and appointment of a liquidator by the centre.

The AJKCB, which owed Rs194.467 million to the Federal Cooperative Bank, was asked by the liquidator to return the loan by 2002. The liquidator suggested that the federal government should deduct the amount at source if the AJKCB failed to make the payment.