The minister, while appearing on the Government Information Agency (GINA) television programme` ANSWERS', said some farmers have reported that there are problems with the banks.

According to GINA, farmers have claimed that the banks are imposing certain conditions and are insisting that they are not in a position to offer restructuring.

He assured that the Government is addressing these issues.

President Bharrat Jagdeo had in February this year announced a relief package aimed at helping 1,200 indebted rice farmers who have outstanding principals of $10M or less and were finding it difficult to repay the banks.

And, through the Government's intervention, the Guyana Association of Bankers had agreed to waive interest and reschedule payments on the loans.

The banks agreed to reschedule the loans over a maximum period of 10 years and for an extended period on moratorium on principal payments to December 2002, meaning farmers whose loans were rescheduled did not have to make any payments until January next, GINA said.

The banks also agreed to suspend payment on 25 per cent of the principal amount on non-performing loans and to write off this amount, subject to the satisfactory servicing of the loan.

In the latter case, a farmer owing $10M would only have to service a principal amount of $7.5M and the balance of the debt would be written off if the farmer kept his payments up-to-date.

Interest rates on the loans were set at a minimum 10 per cent per annum subject to the six-month average rate of the Treasury Bill.

The rice relief package also provided for the banks to approve up to an additional $3M working capital for the farmers.

In return the banks would receive corporate tax relief on all payments made on the new category of loans.

Some 1,300 persons in the rice sector owe the banks about $11B, with about 100 persons owing the greater share of the debt, about 80 per cent, but only some of the small borrowers have been successful in rescheduling their loans with the banks.